In an effort to rejuvenate its core print business, Xerox has announced a significant workforce reduction as part of a larger restructuring plan. The company aims to boost efficiency and enhance its ability to bring products and services to the market.

According to Xerox's website, the IT corporation employed approximately 20,000 individuals as of October 2023. With the layoff affecting 15% of the workforce, around 3,000 positions are expected to be eliminated.

The restructuring plan entails adopting a new operating model and organizational structure while forming a new business services unit at the Norwalk, Conn.-based company. These changes will be led by president and chief operating officer, John Bruno, who will oversee the enterprise alignment of Xerox's print, digital services, and tech services business. Furthermore, a new global business services organization will be overseen by Louis Pastor, Xerox's chief transformation officer.

Xerox's CEO, Steven Bandrowczak, referred to the overhaul as a "reinvention" in a statement to CBS News, emphasizing that it will undoubtedly enhance the company's ability to bring products and services to the market more efficiently.

However, the announcement of the layoffs has impacted Xerox's share price, causing it to tumble nearly 10% to $16.26 as of Wednesday afternoon.

This strategic move comes at a challenging time for Xerox as the company faces stalled growth. While the company managed to generate a profit in recent years, including $7.1 billion in revenue in 2022, its attempts at expansion have been thwarted. In 2020, Xerox abandoned its $35 billion hostile takeover attempt of larger rival HP due to the pandemic.

The decision to lay off a significant portion of its workforce coincides with a tough job market. Data from employment website Indeed reveals a decline of more than 15% in job postings compared to previous years, reflecting the challenges individuals face in finding employment. Indeed's Job Posting Index demonstrated an alarming drop of 22.5% from its peak on December 31, 2021, following a post-COVID hiring frenzy.

In addition, the Labor Department reported on Wednesday that job openings in the US have reached their lowest levels since early 2021, alongside a decrease in the number of people quitting their jobs, suggesting a lack of confidence in the job market.