Xerox Holdings Corporation announced a new operating model and organisational structure to further the company’s “Reinvention”, resulting in 15% workforce reduction.
The company has redesigned and realigned its executive team to support the new operating model. Effective immediately, John Bruno will lead the enterprise alignment of Print, Digital Services, and IT Services businesses. Louie Pastor returns to Xerox as Chief Transformation & Administrative Officer, charged with overseeing the Xerox Reinvention Office and the newly established Global Business Services organisation. Flor Colon, has been appointed Chief Legal Officer and Corporate Secretary.
In addition, Joanne Collins Smee, Executive Vice President and President, Americas and Tracey Koziol, Executive Vice President of Global Offering Solutions and Chief Product Officer, have departed the company effective 31 December 2023.
“Congratulations to our new executive leadership team, and my sincere thanks to Joanne and Tracey for their countless contributions to our company and culture,” said Bandrowczak. “Our new operating model is a significant step towards accomplishing the goals we seek to achieve with our Reinvention.”
“The evolution of Xerox’s Reinvention aligns our resources in three key areas – improvement and stabilisation of our core print business, increased productivity and efficiency through the formation of a new Global Business Services organisation, 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.”
Three key Reinvention priorities and intended outcomes:
Core Print Business:
- Simplify our core products to align with the needs of economic buyers of today’s hybrid workplace.
- Increase investment in a partner-enabled go-to-market model that supports how clients prefer to procure their print solutions.
- With partners, pursue strategic market share gains by increasing reach, improving cost to serve, and enhancing profitability.
Global Business Services:
- Through simplification, drive enterprise-wide efficiency and scalability with centrally coordinated internal processes leveraging shared capabilities and platforms.
- Garner operating leverage and investment capacity for our growth segments through lower transaction costs.
- Improve quality for all business units and functions while focusing on continuous improvement of clients’ and employees’ experiences.
IT and Digital Services:
- Create greater organizational focus on Xerox’s emerging Digital Services and IT Services capabilities to accelerate revenue diversification toward markets with higher growth and profitability profiles.
- Implement a new multi-segment organizational focus to drive internal alignment and incremental services penetration with existing and prospective clients.
By implementing this new operating model, the company will take action this quarter, targeting a 15% workforce reduction. Proposed reductions will be subject to formal consultation with local works councils and employee representative bodies where applicable.
Xerox added that it is committed to providing transition support for affected employees.
