Xerox Corp. announced Tuesday that it would be reducing its workforce across North America by more than 2,400 employees over the next three months. Employees in Europe could also potentially face layoffs, as Xerox said reductions there and in other developing markets are "dependent on consultations with workers' councils and other government policies."
In a statement issued by the company, Anne Mulcahy, Xerox chairman and chief executive officer, said the move is necessary in order for the company to continue to generate "momentum in this uncertain economy."
"Today's difficult economic challenges require difficult decisions," she said. "To serve Xerox best in the long term, we are further aligning our cost structure with the company's leaner, faster and more flexible business model. And, we're doing so in a manner that preserves the strength of our direct sales force and the focus of our research and development investments."
The company will take a fourth quarter pre-tax charge of between US$350 million and US$400 million as a result of the restructuring. It was not made clear how the layoffs would be split between the Canadian and U.S. offices.
As of last month, Xerox's worldwide workforce totaled 69,900 employees.