Xerox Holdings Corporation XRX witnessed a significant decline in its stock price following the announcement of a 15% workforce reduction as part of the company’s new operating model.
What To Know: Xerox is embarking on a business restructuring by targeting a 15% reduction in its workforce as it implements a new operating model.
The workforce reduction initiative is integral to the company’s strategic move to advance its Reinvention and organizational structure.
In line with this, Xerox has outlined three key priorities and intended outcomes of the Reinvention, focusing on its Core Print Business, Global Business Services, and IT and Digital Services.
Moreover, the company has promptly redesigned and realigned its executive team to bolster strategic execution.
Addressing the developments, Steven Bandrowczak, CEO at Xerox, stated, “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.”
The stock took a further hit on Wednesday due to a rise in Treasury yields, which exerted pressure on the tech sector.
XRX Price Action: Xerox stock closed 12.2% lower at $15.84 as reported by Benzinga Pro.
Image by Michal Jarmoluk from Pixabay