The world's largest printing and document services company has announced plans to cut 5 per cent of its workforce and lower its forecast for the next quarter.
Describing current economic conditions as a "tough business environment," Xerox CEO Anne Mulcahy said that by trimming 3,000 jobs over the next six months, the company will save $200 million, according to a Reuters report.
Xerox's third-quarter net income was US$258 million, or 29 US cents per share. But excluding one-time charges and the settlement of tax benefits, the company earned 26 US cents per share.
Most analysts were expecting profits of 28 US cents per share. Equipment sales declined 3 per cent, as some of Xerox's US customers either cut back on printing services, or turned to in-house management, or opted for lower-priced equipment, hurting the company's gross margins as the economy slowed, Xerox reported during its earnings call with investors and analysts.
The company will take a US$400 million charge for the next quarter as a result of the staffing cutback, and expects earnings between 34 US cents and 36 US cents per share. Analysts had been anticipating fourth-quarter earnings of 43 US cents per share.
