Xerox Announces 15% Workforce Reduction in 2024 Amidst Organizational Restructuring

Xerox Holding Corporation (XRX) has declared its intention to reduce its workforce by 15 percent. It is being seen as a strategic move to introduce a new organizational structure and operating model. The announcement came out on 3^rd January this year, outlining the company’s plans for a significant transformation.

The newly introduced operating model is scheduled to be implemented this quarter. It is designed to realign resources and accelerate efficiency in three key areas including the improvement and stabilization of the core print business, increased productivity and efficiency through the establishment of a new Global Business Services Organization, and disciplined execution in revenue diversification according to Steven Bandrowczak, the Chief Executive Officer at Xerox.

As of 31^st December 2022, Xerox had around 20,500 employees specializing in digital printing and document management technologies as disclosed in a filing with US Securities and Exchange Commission. And, with the current reduction plan of the company, approximately 3,075 employees are expected to be impacted.

However, the company has expressed its commitment to provide transition support for affected employees by stating that proposed reductions would be subject to formal consultation with local work councils and employee representative bodies where applicable.

"The shift to a business unit operating model is a continuation of our client-focused, balanced execution priorities," commented Bandrowczak in an official release. He also emphasized that the move is aimed at accelerating product and services, go-to-market strategies, and enhancing operating efficiencies across all geographies served by Xerox.

In Addition to the workforce reduction, Xerox has also revealed that Joanne Collins Smee, Executive Vice President and President of Americas, and Tracey Koziol, Executive Vice President of Global Offering Solutions and Chief Product Officer, have departed from the company, effective December 31, 2023.

This comprehensive restructuring made by the company marks a pivotal moment for Xerox as it navigates through the evolving landscape of digital printing and document management. It reflects its commitment to improving its core business while embracing technological advancements and dedication to staying competitive and adaptable in the tech industry.

The move made by Xerox aligns with broad industry trends where companies are re-evaluating their structures and operations to stay allied to market demands. These trends being carried out in the tech industry underline the challenges faced by technology-based companies in maintaining relevance and sustainability in the fast-paced tech landscape.