Shares of Xerox Holdings Corp. (XRX) dropped 2.4% in premarket trading on Wednesday as the company revealed plans for a reorganization and shift to a business-unit operating model. This new strategy aims to cut 15% of its workforce, potentially impacting more than 3,000 employees.
Focusing on Core Business and Efficiency
“The evolution of Xerox’s Reinvention aligns our resources in three key areas,” said Chief Executive Steven Bandrowczak. The company plans to prioritize the improvement and stabilization of their core print business, increase productivity and efficiency through the formation of a new Global Business Services organization, and maintain disciplined execution in revenue diversification.
Leadership Changes
As part of the reorganization, Louie Pastor will return to Xerox as the chief transformation and administrative officer. Additionally, Flor Colon has been appointed as the new Chief Legal Officer. However, Joanne Collins, president of Americas, and Tracey Koziol, chief product officer, have left the company.
Recent Performance
Xerox’s stock has experienced a 7.1% decline over a four-day losing streak, starting after it closed at a 16-month high of $18.94 on December 27. Despite this recent setback, the stock has still shown a solid increase of 15.6% over the past three months. In comparison, the S&P 500 has grown by 11.6%.