Xerox, a global leader in digital printing and document management technologies, has announced plans to reduce its workforce by 15% as part of a strategic restructuring effort. The company, which had approximately 20,500 employees as of December 31, 2022, disclosed the impending layoffs in a filing with the U.S. Securities and Exchange Commission.

With the planned reduction, it is estimated that over 3,000 employees will be affected by the workforce cuts. The announcement led to a more than 9% decline in Xerox’s stock value following the news.

The restructuring initiative aims to streamline the company’s core print business, enhance operational efficiency across its global business services, and intensify its focus on IT and other digital services. As part of the plan, Xerox has also revamped its executive team to support the implementation of the new organizational model.

Xerox CEO Steven Bandrowczak emphasized that the transition to a business unit operating model aligns with the company’s commitment to client-centric strategies and aims to accelerate product and services, go-to-market, and corporate functions’ operating efficiencies across all geographies served.

The company is set to execute the layoffs within the current quarter, according to the release. However, a representative for Xerox declined to provide further comments beyond the official announcement.

As Xerox moves forward with its restructuring plan, the company’s decision to reduce its workforce has significant implications for both its employees and the broader industry. The development underscores the ongoing challenges and changes faced by companies as they adapt to evolving market dynamics and seek to drive sustainable growth in a rapidly changing business landscape.