Norwalk-based printer maker Xerox Holdings Corp. on Thursday said it tallied $112 million in restructuring costs in 2024, as it implemented a plan to shrink its workforce and streamline its business.
Xerox in January 2024 announced plans to cut 15% of its approximately 20,100-employee workforce as part of a restructuring that included implementing a new organizational structure and operating model.
Today, Xerox employs 16,500 people, including about 300 who report to the company’s Norwalk headquarters, a company spokesman said.
Xerox disclosed the $112 million in restructuring and related costs in its quarterly earnings report, which was released Tuesday. In 2023, the company spent $167 million on restructuring.
According to Xerox, restructuring and related costs are primarily related to severance and benefits paid to employees impacted by workforce reduction plans. It also includes asset impairment charges.
Asked if the company plans any additional workforce cuts, a spokesman said Tuesday, “We have a responsibility to ensure the health of the business and maintain Xerox’s long-term viability. Therefore, as is common practice for all public companies of our size, we will continue to evaluate the needs of the business to follow through on that commitment. If future reductions and/or reorganizations are necessary, our commitment is to share information in a timely and transparent manner and treat impacted employees with dignity and respect.”
Xerox in January 2024 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.
During the fourth quarter of 2024, Xerox said its revenues fell 8.6% to $1.61 billion, while it recorded a $21 million, or 20 cents per share, net loss. For the full year, the company reported a 9.7% drop in revenues to $6.22 billion, and a $1.32 billion, or $10.75 per share, net loss.
In a written statement, Xerox CEO Steve Bandrowczak said, “2024 was a critical year as we implemented a new operating model and structural process improvements to position Xerox for long-term, sustainable growth. We continue to see steady progress in our Reinvention, reflecting the resilience of our team and initiatives taken to-date. In 2025, we expect to build on changes made in 2024 in order to focus on executing our Reinvention strategy, realizing the benefits of the
ITsavvy and pending Lexmark acquisitions, and strengthening our balance sheet.”
Xerox acquired Illinois-based integrated IT products provider ITsavvy in October for $400 million.
In December, Xerox announced it agreed to purchase printer maker Lexmark International in a $1.5 billion deal.
Xerox on Tuesday also issued its 2025 guidance, projecting “low single-digit” revenue growth and an adjusted operating margin of at least 5%.
Xerox’s stock price Tuesday morning was down nearly 12% as of 10:23 a.m. to $8.57.
