Xerox Corp. officials said today that the company will lay off 9,000 workers and take a US$1 billion charge to cover the cost of a restructuring.
"This restructuring is an important and integral part of implementing our strategy and ensuring that we maintain our leadership in the digital world," said Paul A. Allaire, Xerox's chairman and CEO, in a statement. "The continued adverse currency and pricing climate underscores the importance of continuous and -- in certain areas -- dramatic productivity improvements."
As part of its worldwide restructuring, Xerox will overhaul some of its administrative processes by closing customer centers, centralizing U.S. parts depots and developing a central European operations center instead of placing one center in each European country.
Xerox's president and chief operating officer, G. Richard Thoman, said that the company needs to renew its focus on adapting and leading the markets in digital technologies. Thoman came to Xerox last June from IBM, where he had a reputation for cutting costs as that company's chief financial officer.
Following the news, Xerox's stock price slipped a fraction to 106-15/16.