Xerox Holding Corporation (XRX) has announced plans to reduce its workforce by 15%, signaling a strategic shift in its organizational structure and operating model. The declaration, made on January 3rd, 2024, outlines the company’s transformative initiatives set to be implemented this quarter.
The newly introduced operating model aims to realign resources and enhance efficiency in three key areas: improving and stabilizing the core print business, increasing productivity and efficiency through the establishment of a new Global Business Services Organization, and disciplined execution in revenue diversification. Steven Bandrowczak, Xerox’s Chief Executive Officer, emphasized the strategic goals behind the restructuring.
As of December 31, 2022, Xerox had approximately 20,500 employees specializing in digital printing and document management technologies, as disclosed in a filing with the US Securities and Exchange Commission. The current reduction plan is expected to impact around 3,075 employees.
Despite the reduction, the company has expressed its commitment to providing transition support for affected employees, stating that proposed reductions would undergo formal consultation with local work councils and employee representative bodies where applicable.
Bandrowczak commented on the shift to a business unit operating model, characterizing it as a continuation of the company’s client-focused, balanced execution priorities. He emphasized that the move is intended to accelerate product and services strategies, go-to-market strategies, and enhance operating efficiencies across all geographies served by Xerox.
In addition to the workforce reduction, Xerox announced the departure of Joanne Collins Smee, Executive Vice President and President of Americas, and Tracey Koziol, Executive Vice President of Global Offering Solutions and Chief Product Officer. Their departures were effective December 31, 2023.
This comprehensive restructuring represents a pivotal moment for Xerox as it navigates the evolving landscape of digital printing and document management. It underscores the company’s commitment to improving its core business, embracing technological advancements, and demonstrating dedication to remaining competitive and adaptable in the tech industry.
Xerox’s strategic move aligns with broader industry trends, where companies are re-evaluating their structures and operations to stay aligned with market demands. These trends within the tech industry highlight the challenges faced by technology-based companies in maintaining relevance and sustainability in the fast-paced tech landscape.
