August 9, 2016
The Hour reported on the job cuts, with Xerox said to have “slowed the pace” even with the elimination of 1,300 roles worldwide. In turn, it paid severance to laid-off employees of over $73 million (€65 million), or an average of $56,000 (€50,545) per job, while in the first quarter of the year it cut 4,800 positions globally, and paid $124 million (€111 million) in severance pay.
This was said by The Hour to have been mostly “impacting its business process outsourcing operations”, which are in the process of being “spun out” as part of the plans split into two companies before the end of the year. The two new companies are Conduent and Xerox – for business process optimisation and hardware respectively – with the latter also being affected by the restructuring at this point.
Previous US job cuts have been reported in the last few years, including: 85 jobs in Colorado; 148 jobs in North Carolina and Florida; 98 in Seattle; 84 in Louisiana, 495 and later 48 in California and New York; and 178 again in North Carolina earlier this year; 123 in New York and 468 in Texas in 2014; 25 in Virginia, 48 in Canada, 439 in Texas and 300 in Oregon in 2013; and 2,500 across the company in 2012. Recently however, it also announced it was hiring 545 people in California, and recalled laid-off employees in Colorado.
The OEM had been in talks to acquire financial printing firm RR Donnelley, but rejected the merger because RR Donnelley proposed “that its executives take control of the combined operations, and sought several hundred million dollars in new cost cuts”. Outgoing CEO Ursula Burns said recently that the OEM was planning to spend $100 million (€90 million) on mergers during the remainder of the year, specifically on the business process outsourcing side of the business.
The Recycler recently reported that the OEM’s earnings and costs were better than analyst expectations, ahead of its split, with the costs of splitting the company into Conduent and Xerox would be “lower than previous estimates”. The second quarter results were said to have “beat[en] analysts’ estimates”, with costs falling by six percent to $4.24 billion (€3.79 billion), and revenue falling 4.4 percent to $4.4 billion (€3.9 billion).
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