Xerox Layoffs Impact More than 3,000 Workers

Xerox layoffs will impact 15% of its workforce, or more than 3,000 employees, as part of a new operating model and organizational structure.

Xerox announced its plans on Wednesday. In addition, the workplace and digital printing service provider is dealing with a data breach in its Xerox Business Solutions (XBS) subsidiary.

The company's stock was trading 9% lower on Tuesday as of 1:26 p.m. ET.

Xerox had about 20,500 employees as of Dec. 31, 2022, according to an SEC filing. The layoffs will take place this quarter. They will be subject to formal consultation with local labor unions where where applicable. Xerox said it is providing transition support for affected employees.

Xerox Layoffs Part of Reinvention

“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,” said CEO Steven Bandrowczak.

Xerox's Steven Bandrowczak

Xerox also announced a new executive leadership team, including Jacques-Edouard Gueden as the company’s chief channel and partner officer. He’s been with Xerox for more than 22 years and has been serving as executive vice president and president of EMEA.

Related:Xerox Enhances Partner Program to Steer Partners to 'Untapped' Revenue Source

Partners Getting More From Restructuring

In its core print business, Xerox’s plans include:

In its global business services organization, Xerox plans to:

For IT and digital services, Xerox plans to:

Related:Updated Telecom-IT Layoff Tracker September 2023: Cisco, Ingram Micro, Trellix, T-Mobile, More

Among Xerox’s new leadership team are John Bruno, president and COO; Xavier Heiss, chief financial officer; Louie Pastor, chief transformation and administrative officer; and Deena Piquion, chief growth and disruption officer.

In addition, Joanne Collins Smee, executive vice president and president for the Americas, and Tracey Koziol, executive vice president of global offering solutions and chief product officer, have left the company.

XBS Data Breach

In a statement, Xerox said XBS experienced a security incident that was detected and contained by Xerox cybersecurity personnel. The event was limited to XBS’s U.S. division.

According to Bleeping Computer, the INC Ransom ransomware gang added Xerox to its extortion portal on Dec. 29. It claimed to have stolen sensitive data and confidential documents from its systems.

“We are actively working with third-party cybersecurity experts to conduct a thorough investigation into this incident and are taking necessary steps to further secure the XBS IT environment,” Xerox said. “The incident had no impact on Xerox’s corporate systems, operations or data, and no effect on XBS operations.  However, our preliminary investigation indicates that limited personal information in the XBS environment may have been affected. As per our policy and standard operating procedure, we will notify all affected individuals as required. The data privacy and protection of our clients, partners and employees are our highest priority.”