Processing Your Payment

Please do not leave this page until complete. This can take a few moments.

July 25, 2024

Amid job cuts, Norwalk-based Xerox spent $51M on restructuring costs during first half of 2024

PHOTO | CONTRIBUTED Xerox headquarters in Norwalk
By Greg Bordonaro

Norwalk-based printer maker Xerox Holdings Corp. on Thursday said it has tallied $51 million in restructuring costs during the first six months of the year, as it implements a plan to shrink its workforce.

Xerox in January announced plans to cut 15% of its workforce as part of a restructuring that includes implementing a new organizational structure and operating model. That would amount to about 2,010 job cuts, based on the 20,100 employees the company said it employed at the end of 2023, according to Xerox’s annual report.

Xerox, in its most recent annual report, said it had about 400 fewer employees at the end of last year than it did at the end of 2022, as a result of “net attrition … and restructuring.”

Xerox disclosed the $51 million in restructuring costs in its second quarter earnings report, which was released Thursday. That sum is more than double what the company spent on restructuring during the first half of 2023. 

It’s not clear how much of that money went toward severance packages or other layoff-related expenses. It’s also not clear how many layoffs have occurred so far this year, including in Connecticut, where Xerox employed about 250 people at the start of 2024. 

In its annual report, Xerox did say the job reductions would impact “all levels and areas of the organization.”

However, the cost cutting appears to be helping Xerox’s bottom line. Although the company’s second-quarter revenues were down 10% from a year earlier, to $1.6 billion, Xerox reported an $18 million, or 11 cents per share profit, reversing a $61 million, or 41 cents per share loss in the second quarter of 2023.

"The comprehensive and strategic operating model changes implemented in Q1 caused a short period of disruption but are delivering the intended improvements in financial results,” said Xerox CEO Steve Bandrowczak.

Xerox in January said its reorganization would focus on  forming a new global business-services unit, stabilizing its core print business and increasing its focus on IT and other digital services.

Xerox’s stock price Thursday morning was down about 6.8% as of 11:37 a.m. to $10.98.

Sign up for Enews

Most Recent

Most Recent

0 Comments

Order a PDF