Struggling copier vendor Xerox has outlined plans for further job cuts and the divesting of several business interests in a bid to claw back its financial stability.
The vendor did not specify the number of job losses, but officials said it would "substantially reduce the number of positions at the company". The plans are part of an attempt to save $1bn in costs over the next year.
The restructuring deal follows a similar plan earlier this year when Xerox announced it would axe 5200 jobs. The vendor said yesterday that it would also sell assets valued at between $2bn and $4bn.
It is already in talks to sell its 50 per cent stake in Fuji Xerox for a reported $1.84bn, and is looking for joint venture partners for its Palo Alto research centre and inkjet printer business.
Xerox also released its third-quarter results, which amounted to a loss of $167m, compared with a profit of $339m last year. The figures included a $55m charge related to Xerox's Mexican subsidiary. Turnover fell by 3.7 per cent to $4.46bn from $4.63bn a year ago.
Paul Allaire, chief executive at the company, said: "Our actions are centred on improved cash flow and profitability, and strengthening our strategic core. Just fixing our operational issues, although critical, is not sufficient."
Allaire said the overhaul was intended to reduce Xerox's $18bn debt. The company wants to focus most of its direct sales and document outsourcing resources at the high end of the market, he added.
Mehool Sanghrajka, managing director of Xerox reseller MPC, said the vendor has to support its channel more if it wants to get out of trouble. "Xerox has gone direct as a reaction to the success of Dell, but its business model does not support the change. It does not recognise the value resellers could add. It sees us as box shifters and is paying the price."
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