Fuji Xerox New Zealand managing director Peter Thomas has told staff the company plans to cut about 100 jobs after the collapse of its print business during COVID-19, according to a report by NZ news website stuff.co.nz.
"A difficult and stressful time for all our staff":
Thomas says the move is necessary to ensure the ongoing viability of the business after its printing volumes fell by up to 85 per cent because of COVID-19 restrictions.
“Like all other New Zealand companies our operating and economic landscape has shifted rapidly and dramatically. During the Covid-19 lockdown, our print volumes declined by up to 85 per cent. This will eventually bounce back somewhat as more companies return to their offices, but we do not believe that print volumes will ever recover to pre-Covid levels.”
“The job cuts will be made across the New Zealand operation and newly acquired business CSG,” according to the report by Stuff’s Andrew Gorrie.
“This is a difficult and stressful time for all our staff,” Thomas said. “We will be providing those directly affected by the proposal with additional support throughout this process.”
Fuji Xerox NZ employs 530 staff and a further 370 at CSG and CodeBlue. The recent purchase of CSG and CodeBlue helped to diversify the company, Thomas said.
"Originally, we had allowed for up to 12 months to integrate our companies in a phased manner, however the impact of COVID-19 means we now need to accelerate this process and there will be a reduction in headcount across the merged entities as a result of this activity."
FXNZ has received $3.7 million from the Government wage subsidy for 534 staff. It continued to pay its staff 100 per cent of their normal salaries during the lockdown.
Fuji Xerox Australia has yet to comment on the report.
In October 2019, Fuji Xerox NZ has added accountancy firm EY (formerly Ernst & Young) as a defendant in its case against three former executives over an accounting scandal that saw FXNZ and Fuji Xerox Australia (FXA) overstate revenues by about $A450 million.