Subscribe To Our Daily Enewsletter:

Xerox Layoffs 2018 Part 2: More Printer Company Staff Cuts

More Xerox layoffs surfaced at the printer company on Thursday. The latest round involved employees at Xerox offices near Rochester, New York, according to multiple reports from local media.

The cuts apparently involved management positions rather than unionized employees in manufacturing. It’s unclear whether the cuts extended beyond the Rochester region. Xerox did not comment on the cuts and the number of positions impacted.

This the company’s second round of layoffs this year. Earlier, Xerox eliminated 900 positions worldwide in its Q3 2018. Xerox’s revenue was $2.35 billion in that quarter, down 5.8 percent from the Q3 2017. Also, the company’s net income was $93 million, down from $182 million in Q3 2017.

Xerox changed CEOs in May 2018 after abandoning an M&A plan with FujiFilm. Xerox and FujiFilm have since been locked in a legal battle about the scrapped deal’s ultimate fate.

Printer Industry Challenges

These remain challenging times for printer companies. Several manufacturers this year have cut headcount amid revenue and profit challenges — especially as customers shift more of their spending to cloud and OpEx-related services.

Among the layoffs ChannelE2E has tracked:

Can Managed Print Services Help?

Generally speaking, all of the major printer makers are studying or accelerating shifts toward managed print services within the IT channel. HP earlier this week said it was shifting its direct sales MPS Speciality accounts — making them available as premier channel opportunities.

Xerox has been making MPS moves as well. For instance, accredited channel partners can run their service visits, supplies delivery and back-office functions more efficiently with a recent integration with ECi e-automate software, the company said in November.

Xerox has also boosted product integration with various cloud services, while enhancing marketing tools for partners.

The key takeaways: Yes, Xerox is shrinking and cutting some headcount. But the company also remains profitable while introducing more recurring revenue opportunities for partners. The big unknown: Is there a way to restore the company’s top-line revenue growth?

4 Comments

Comments

    Str8Troof:

    “This the company’s second round of layoffs this year.”

    -Wrong! Xerox has been laying off quietly, outside of the two noted ’rounds’…

    Diane Watson:

    Besides laying off silently, as of March 2019 Xerox just moved/outsourced all their remote support specialists and analysts to a company in India. They will no longer be working for Xerox. All the workers had to sign an agreement to do so within the last couple of weeks or get laid-off. No one knows what is happening to their pensions and 401k’s yet.

    John Scott:

    Sorry to hear this. I was an RSS until 2017, took a vrif. Are you saying all of RTS is gone?

    AJ Gyomber:

    When I first started my company in 2007, we were a Xerox partner and they were pretty active in the channel. It seemed as if they just disappeared for many years and are now just starting to pay attention to us again. I think a lot of companies think they can handle the “last mile” well but find out they can’t and they still need us. Managed Print is definitely an area my company can improve but we haven’t felt there is a good partner out there.

Leave a Reply

Your email address will not be published. Required fields are marked *