Xerox to lay off 2,500
Xerox announced today they will lay off 2,500 workers world wide. This comes as a result of the company taking a $100 million charge to enable restructuring in the fourth quarter.
The majority of cuts will be in the service side of the Xerox business, despite a growth in this section for the company. Services now account for more than half of Xerox's revenue.
Employment in Rochester is primarily centered on the technology side of the business, or the company's legacy side, Xeroc officials say. No details have been released on the impact of any reductions in the Rochester area.
Despite this news, Xerox says it's growing services businesses lays the foundation for a solid future.
Company Chair and CEO Ursula Burns is among those speaking today at the company's annual investors conference in New York City.
Burns says over 50 percent of Xerox's revenues come from services, and that will grow to two-thirds of its revenue by 2017.
Burns says Xerox's strengths are in the areas of innovation, operational excellence, its brand, and global presence.
She says those strengths offset the weaknesses the company has in in services margins and document technology revenue.
Xerox expects to increase its dividend to shareholders and expand its share repurchase next year.
But the company is also forecasting fourth quarter earnings of 28 to 30 cents a share.
That's down from its October forecast of 33 cents to 35 cents.