Layoffs spillover in 2024 as Xerox plans to cut 15% jobs

Printing pink slips: American digital documents product company Xerox will be reducing staff by 15 per cent in a restructuring bid to change its operating model.

The company, whose name became a synonym for photocopies, confirmed the development in an official statement, saying proposed reductions will be subject to formal consultation with local works councils and employee representative bodies where applicable.

“By implementing this new operating model, the company will take action this quarter, targeting a 15 per cent workforce reduction. Xerox is committed to providing transition support for affected employees,” the company said.

The new model aligns resources in three key areas: core print business improvement, Global Business Services organization formation, and revenue diversification execution.

A filing with the US Securities and Exchange Commission in 2022 revealed that the enterprise had 20,500 employees. This impacts the total company headcount by 3,075 employees.

Steven Bandrowczak, Chief Executive Officer at Xerox said, “The shift to a business unit operating model is a continuation of our client-focused, balanced execution priorities and is designed to accelerate product and services, go-to-market, and corporate functions’ operating efficiencies across all geographies we serve."

As part of the layoffs, Xerox assured “transition support” to employees. The layoffs are scheduled for the present quarter, as per reports.

The company saw high-profile departures 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 on the last day of 2023.

Impact Back Home

AI innovation is behind white-collar jobs going away, as listed fintech Paytm announced its decision to let go of thousand-odd employees owing to "AI innovation."

Last year, Google, Meta and Twitter (now X) had also laid off employees, with the search engine giant planning another set of layoffs.

As per reports, Google's potential layoffs are likely to affect up to 30,000 employees, as part of a strategic move to integrate AI into various aspects of its business processes.

Experts suggest sentiments in tech have been improving over the past few months as inflation has cooled and the generative AI craze has picked up, executive Dorie Clark told Axiom in an interview.