Xerox reveals 3,000 jobs to go in third quarter figures

Xerox is to cut 3,000 jobs worldwide over the next six months as part of a cost-cutting exercise that the company anticipates will save it $200m (£129.4m).

The cuts, which represent 5% of its global workforce, come off the back of the manufacturer's third quarter results where total revenue grew 2% to $4.4bn in a "tough business environment".

Xerox will be on the receiving end of a $400m pre-tax charge for the restructuring, which will see the number of the company's 57,000 worldwide employees dip, primarily in the manufacturing and administration departments.

Elsewhere, Xerox' post-sale revenue for the three months ending 30 September increased more than 3% from $3.146bn to $3.245bn while equipment sale revenues dipped 3% to $1.125bn.

The company generated an operating cash flow of $260m that brings its total this year to the $754m mark while its Global Services arm generated annuity revenue of $2.6bn in annuity revenue, a 6% jump from the year previous.

Anne Mulcahy, chairman and chief executive officer of Xerox said the results reflected "the value of a business model that delivers solid operating cash flow through a profitable annuity stream".

However, she said the company is "accelerating actions to reduce our cost base and drive operational improvements across the board, giving us more flexibility in our business and in this unpredictable economy".

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