Xerox Corp . (NASDAQ:XRX) shares tumbled more than 6% Wednesday after the company announced a workforce reduction as part of its new operating model and organizational structure.
Xeros said it is planning to cut 15% of its workforce. As part of the "Reinvention and Operating Model Evolution," Xerox also realigned its leadership team, with Joanne Collins Smee, Executive Vice President and President of Americas, and Tracey Koziol, Executive Vice President of Global Offering Solutions and Chief Product Officer, departing the company effective December 31.
XRX is down precisely 6.5% at the time of writing, trading at $16.85 per share.
The new model will see the company focus on three key areas: Xerox's core print business, global business services and IT and digital services.
"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 Steven Bandrowczak, Chief Executive Officer at Xerox.
"The shift to a business unit operating model is a continuation of our client-focused, balanced execution priorities and is designed to accelerate product and services, go-to-market, and corporate functions' operating efficiencies across all geographies we serve."