Xerox shares sink on restructuring plans to cut 15% of staff

(Sharecast News) - Shares in Xerox Holdings dropped sharply on Wednesday morning in New York after the American digital printing and office solutions group unveiled a "reinvention and operating model evolution" which will see it cut 15% of its workforce. The new plan, which will be actioned in the current quarter, will affect an estimated 3,450 workers of the total 23,000 employed according to its latest annual report.

The restructuring plans involved refocusing the company's resources in three key areas, according to chief executive Steven Bandrowczak. These are the "improvement and stabilization of our core print business, increased productivity and efficiency through the formation of a new Global Business Services organization, and disciplined execution in revenue diversification," Bandrowczak said.

He said the organisational change was part of Xerox's "client-focused, balanced execution priorities", designed to accelerate product development, go-to-market strategies and overall efficiency.

In a press release, the company said: "By implementing this new operating model, the company will take action this quarter, targeting a 15% workforce reduction. Proposed reductions will be subject to formal consultation with local works councils and employee representative bodies where applicable. Xerox is committed to providing transition support for affected employees."

The stock was down 8.8% at $16.45 by 1041 ET.