Xerox Photocopy Machine Manufacturer LAYOFFS 3,000 Workers In The First Quarter Of 2024

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Xerox Employee Layoffs, Era Of Photocopy Ends?

JAKARTA - Global photocopying machine maker Xerox announced it would cut its workforce by 15 percent as part of the restructuring.

The effort is to shift focus to business service offers and stay away from its iconic photocopy machine.

Citing Nytimes, the company said it would reduce its global staff, which includes around 23,000 employees by 2022 and appoints a new leadership team.

Layoffs are expected to occur in the first quarter of 2024.

So that the company's shares fell more than 12 percent after the news of layoffs was announced.

Although, its share price has continued to rise over the past year, in part because Xerox has saved billions of US dollars after starting the cost cuts program in 2018.

Meanwhile, the company reported a decrease in revenue of around 6 percent in the third quarter of 2023 compared to the quarter compared to the previous quarter.

In recent years, Xerox has struggled to adapt to the digital era due to declining demand for ink and printed documents.

Under the leadership of former Xerox CEO Ursula Burns, the company is trying to improve its business services by helping clients simplify the flow of documents in human resources and health services and dealing with payment systems.

In 2010, Xerox acquired Affiliated Computer Services, which runs a computer payment service for the E-ZPass highway toll road, worth $6.4 billion.

However, Xerox had to sell its information technology outsourcing business worth more than $1 billion in 2014, and competition from China in the production of cartridge clones cost its profits.

Xerox also continues to make breakthroughs in 3D printing, but the business unit will also be sold in August 2023.

Meanwhile, in 2018, Xerox announced a merger with Japanese conglomerate Fujifilm.

However, the merger was canceled less than three months after shareholders, especially Carl Icahn, protested the move because it considered Xerox too low.

Meanwhile, in 2019, Xerox attempted to acquire a cellphone, but the deal was also canceled after HP rejected it, citing concerns over Xerox's financial health.