Xerox Greets the New Year with a New Corporate Structure

Xerox kicked off 2024 with a bang, announcing a new operating model and organizational structure that moves the company along on its “reinvention” journey. The evolution will see changes in Xerox’s core print business, a greater focus on its growing digital services and IT services offerings, as well as the streamlining of internal global business services to drive enterprise-wise efficiency. Along with these initiatives, Xerox indicated it will shed 15% of its workforce—around 3,000 employees—in the first quarter of 2024.

In his statement announcing the reorganization, Xerox CEO Steven Bandrowczak noted that, “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.”

The three key reinvention priorities include:

• Core Print Business: Simplify Xerox’s product offerings to align with the needs of buyers in today’s hybrid workplace, increase investment in a channel partner-enabled go-to-market model that supports how clients prefer to procure their print solutions, and (with those partners) pursue strategic market share gains by increasing reach and improving costs.
• IT and Digital Services: Focus on Xerox’s emerging digital services and IT services capabilities to accelerate revenue diversification toward markets with higher growth and profitability potential.
• Global Business Services: Drive enterprise-wide efficiency with centrally coordinated internal processes that leverage shared capabilities and platforms, garner operating leverage for growth segments through lower transaction costs, while also focusing on continuous improvement of clients’ and employees’ experiences.

To support these goals, Xerox also announced new executive leadership roles. For example, John Bruno will lead the enterprise alignment of the Print, Digital Services, and IT Services businesses, while Louie Pastor will serve as Chief Transformation & Administrative Officer charged with overseeing the Xerox Reinvention Office and the newly established Global Business Services organization.

Keypoint Intelligence Opinion

While the staffing cuts are unfortunate, the reinvention Xerox has been working on over the past half-decade or so is in the right direction. Extricating itself from the Fuji-Xerox joint venture lets it focus on developing its value-add products and services rather than on hardware manufacturing—always a fickle master. Keypoint Intelligence’s market studies have shown that the company has become a leader in areas such as intelligent document processing and smart workplace solutions. Now, with greater emphasis on digital transformation and IT services, Xerox should be poised for growth if the company’s employees and partners can execute on the new vision.

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