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Xerox Layoffs 2018: Targeted Staff Cuts at Printer Company

Xerox experienced targeted layoffs today across the U.S. and Canada, WHAM reports. The cuts come as multiple printer companies strive to reconfigure their businesses amid intense competition, hardware pricing pressures and customer shifts toward subscription services.

The Xerox layoffs span internal IT operations team members — including software engineers, system engineers, program managers and associated support as well as finance managers, the report indicated.

Still, the layoffs sound targeted in size. Xerox declined to disclose specific figures, but the layoffs in New York State were below threshold levels that would have triggered specific disclosures to the labor department, according to WXXI.ChannelE2E has not independently confirmed the cuts.

Xerox and Printer Rivals: The Challenges

These are challenge times for Xerox and many of its core rivals. After abandoning a controversial merger with Fuji, Xerox ousted ousted former CEO Jeff Jacobson and installed John Visentin into the position in May 2018. He previously held key posts at Novitex Enterprise Solutions, HP and IBM.

Xerox CEO John Visentin

Visentin must somehow jumpstart revenue growth at Xerox. For its Q2 2018 results announced in July:

  • Revenue was $2.51 billion, down 2.2 percent from Q2 2017 — though $20 million better than Wall Street was expecting, according to SeekingAlpha.
  • Net income was $114 million, down from $170 million in Q2 2017. The net income results fell short of Wall Street’s expectations.

During that earnings announcement, Visentin vowed to have a “relentless focus on optimization.”

Moreover, he said the company was not conducting an auction process — i.e., Visentin was not seeking buyers for the business. In terms of walking away from the Fuji M&A deal, the company is “confident in our right to terminate the [Fuji] transaction and will defend ourselves through the legal process,” he said in July.

During that earnings call, he also vowed to grow the company’s managed print services business, while also promoting DocuShare as a Box- and Dropbox-like service for managing digital content.

“We’re going to make sure that we have the right mix of direct, indirect and online or e-commerce channels to support our various clients,” he said in July. “And we’re going to work with our channel partners whether they are agents, concessionaires, document technology partners, solution providers or velocity partners to create frictionless processes and quick response times.”

Broader Printer Industry Layoffs

Xerox rivals also are hitting turbulence.

Lexmark Channel Chief Sammy Kinlaw

For instance,  Ricoh earlier this year apparently trimmed 1,000 management positions in Europe. And Lexmark International will experience about 1,000 layoffs in 2018.

Still, Lexmark Global Channel Chief Sammy Kinlaw is upbeat about the company’s overall prospects. He plans to announce commercial partner and managed print services (MPS) partner initiatives later this year, Kinlaw indicated during a call with Channel E2E in July.

On a more positive note, HP Inc.’s $1.05 billion buyout of Samsung’s printer business has been mostly drama-free.

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5 Comments

Comments

    Matt:

    Very sorry to hear it. This is why I moved out of upstate NY to Texas. The employment market is MUCH better. When you are letting software engineers go in a business that leans on software almost to the exclusion of anything else to do what it does, it is flesh eating its own flesh. Further very bad signs. This is just really poor management in action combined with New York’s War on Business. NY and CA are losing 100,000 people/yr. EACH as their state gov’ts tax businesses out of business and out of the state. Meanwhile people live in a take-whatever-you-can-get employment market. Even for s/w people it takes MONTHS to get even one job offer after applying to hundreds of places. In Texas… less than 2 weeks between jobs. No state income tax. No snow. Loads of room. 3000 sq. ft. homes for $230k in cities like Austin and San Antonio. I am so glad I moved.

    Relocating from NY is about the only thing left for people who want decent jobs, by and large. A very small percentage of people are doing well in upstate, mostly sr. executives and politicians it seems. The rest are lucky to have work.

    I can say will the authority of experience that upstate NY people with decent skills need not put up with this kind of thing. Move. You’ll be much happier.

      Joe Panettieri:

      Hi Matt: Thanks for your readership and perspectives. I’m a New Yorker based on Long Island. “Upstate” New York can be a tricky region to define, since most Long Islanders think everything north of The Bronx is “Upstate.” Still, I can relate to your thoughts, having visited the Catskills regularly for two decades.

      Among the ways we may see progress: Students who receive the State University of New York (SUNY) Excelsior Scholarship (free tuition for eligible SUNY and CUNY students) must: “Live and work in New York State for the time period equal to the duration of the award received. Failure to meet Excelsior Scholarship program requirements will result in the conversion of your award to a loan.”

      So a four-year SUNY student with the Excelsior scholarship will likely remain in-state for at least four years after graduation. I suspect that may help companies to incubate and grow more innovative workforces in some of the state’s weaker economic regions. We’ll be watching to see if/how that plays out…

      -jp

      MH:

      As one of the recent Xerox casualties and a small business owner, I can tell you this is an accurate description of the Rochester area. I will add that the only other people doing well here are the public sector employees, specifically school administrators and teachers. They enjoy very high salaries and comfortable pensions. While private sector employees are being laid off and can’t find jobs.

      The private sector is dying a slow death. This isn’t sustainable. The tax base continues to weaken as the public sector grows. I don’t see how that can continue unabated. We will be leaving the state as soon as our youngest child graduates high school. Sad. This is a beautiful area.

        Joe Panettieri:

        Hi MH: I’m sorry to read about the challenges you’ve mentioned. I faced similar challenges in my own career. They were more market-focused rather than regional-focused. The challenges involved the decline of magazine publishing. I could have spent a decade navigating the decline, trying to hang on. Instead, I cut my losses and took a lower-paying job in the education sector until I could sort out my next career. I stumbled into WordPress. I tracked the channel. I found an awesome business partner (the biggest break of all). The rest is history.

        That’s my longwinded way of saying: Don’t look back. Find your future in Rochester, or find your future in a dream town you want to call home. Either way, best wishes for a successful journey.
        -jp

    Jeffrey Strickland:

    Wow! How’s this for a story? I recieved a great review last week from my VP and his last words were keep doing what you do. A week later I am told by him “due to Xerox Reduction in the Work Force your last day is September 15th” . Here’s the best part I am to train someone before I leave. I am not bitter after five years however, John Vesitine has done this to companies everywhere he’s been. My feelings are that he’s not done yet cutting jobs and most of all ruining peoples lives.

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