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.
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.
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?