2024 hasn't started too well for approximately 3,000 Xerox employees, who stand to loose their jobs in the first quarter. January 3rd saw an announcement to the NASQAQ stock exchange that 15% of its 20,000 workforce is planned to be axed. This reflects a growing trend in the tech sector which, according to CNN, shed over 262,000 jobs in 2023, compounding on 165,000 layoffs in 2022.
Xerox Holdings revenue was USD$7.1 billion in FY2023, compared to a peak of $22 billion in 2011
CNN also noted that: "The tech sector is pouring billions of dollars into AI. But it keeps laying off humans."
In announcing a new operating model and organizational structure to further what Xerox calls its 'Reinvention,' Chief Executive 
Xerox CEO Bandrowczak Officer Steven Bandrowczak said: “The evolution of Xerox’s Reinvention aligns our resources in three key areas – 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. 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 operating efficiencies across all geographies we serve.”
It should be noted that, following the 2019 collapse of the proposed takeover by Fujifilm the 'geographies' Bandrowczak refers to exclude Asia-Pacific and most of Oceania, which Fujifilm acquired 100% of, following the settlement that saw it buy out all of Xerox's remaining 25% interest in the joint venture Fuji Xerox, for USD$2.3 billion. Thus, Xerox's geographies are mostly North, Central and South America, the Carribean, Western & Central Europe, Africa, the Middle East. Western Asia and the Indian subcontinent.
Xerox's three key 'Reinvention' priorities and intended outcomes are:
Core Print Business:
- Simplify core products to align with the needs of economic buyers of today’s hybrid workplace.
- Increase investment in a partner-enabled go-to-market model that supports how clients prefer to procure their print solutions.
- With partners, pursue strategic market share gains by increasing reach, improving cost to serve, and enhancing profitability.
Global Business Services:
- Through simplification, drive enterprise-wide efficiency and scalability with centrally coordinated internal processes leveraging shared capabilities and platforms.
- Garner operating leverage and investment capacity for our growth segments through lower transaction costs.
- Improve quality for all business units and functions while focusing on continuous improvement of clients’ and employees’ experiences.
IT and Digital Services:
- Create greater organizational focus on Xerox’s emerging Digital Services and IT Services capabilities to accelerate revenue diversification toward markets with higher growth and profitability profiles.
- Implement a new multi-segment organizational focus to drive internal alignment and incremental services penetration with existing and prospective clients.
The Xerox company has redesigned and realigned its executive team to support the new operating model. Effective immediately, John Bruno will lead the enterprise alignment of Print, Digital Services, and IT Services businesses. Louie Pastor returns to Xerox as Chief Transformation & Administrative Officer, charged with overseeing the Xerox Reinvention Office and the newly established Global Business Services organization. Flor Colon, has been appointed Chief Legal Officer and Corporate Secretary.
Two senior executives departed the company effective Dec. 31st 2023, namely: Joanne Collins Smee, Executive Vice President and President, Americas and Tracey Koziol, Executive Vice President of Global Offering Solutions and Chief Product Officer.
In announcing the planed staff reduction, Xerox says: "By implementing this new operating model, the company will take action this quarter, targeting a 15 percent 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."
Fujifilm continues to supply OEM printers and systems to Xerox.
