Xerox to cut 3,000 jobs in next six months

[OhioChick]

Source: Economic Times India

24 Oct, 2008, 1220 hrs IST, AGENCIES

NEW YORK: Xerox Corp, the largest maker of high-volume colour printers, plans to eliminate 3,000 jobs in the next six months and speed manufacturing cost cuts to cope with an "unpredictable economy".

The job cuts are being made in administration and manufacturing through voluntary buyout packages, spokesman Bill McKee said. Sales employees won't be affected, he said. The reductions represent 5.2 per cent of the company's workforce of 57,400 as of Sept 30.

Chief Executive Officer Anne Mulcahy is accelerating a cost- cutting program after sales of equipment fell 2.7 per cent in the third quarter on slowing US demand for production printers.

Profit margins shrank on lower prices and higher administrative expenses. Xerox said fourth-quarter profit will trail analysts' estimates even before it spends $400 million to ramp up the restructuring program.

"Xerox is trying to get ahead of the economic downturn by aggressively going after costs in order to maintain margins," Shannon Cross, an analyst with Cross Research in Livingston, New Jersey, wrote in an e-mailed statement. She rates Xerox "buy."


Read more: http://economictimes.indiatimes.com/Infotech/Xerox_to_cut_3000_jobs_in_6_mths/articleshow/3636265.cms

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Job loss is astronomical.

[marmar]

1. The economy can't keep absorbing these kinds of job losses when the job market already sucks.....

..... I don't think a straw will be needed to break the camel's back.

[onlyadream]

2. where?

did they say that these will be American jobs?

[OhioChick]

3. Google is your friend....

"News of the cuts came as the company revealed its quarterly earnings report. Xerox managed to pull in a $258m profit with help from a surge in sales to developing countries.

However, sales in the US took a hit and the company expects its numbers to follow suit as the economic downturn continues."

http://www.vnunet.com/vnunet/news/2228988/xerox-lays

Judging by that statement, I would tend to believe that "most" job cuts would be seen in the U.S. and not as many globally.

[Azlady]

4. So many job losses...

The interesting thing about this article is that at least Xerox is going to be offering buy out packages... which typically means they will be looking at those that are close enough to retirement that they can retire early, with full benefits etc, etc. this is one of the first corporations that have said they are going to offer this, verses a straight lay off. They are doing this in some States that are hurting as well, to State workers, offering early retirement packages, verses a straight lay off.
Frightening all the jobs that are going away.