STAMFORD, CONN. Xerox trims jobs, office locations

The pretax charge against earnings will be larger than originally expected.
STAMFORD, Conn. (AP) -- Xerox Corp. said Tuesday it will cut more than 2,400 jobs, or 3.4 percent of its worldwide work force, through a combination of layoffs and voluntary departures to reduce costs and boost efficiency.
"For Xerox to continue building momentum in this uncertain economy, we need to accelerate our drive to improve efficiency while delivering competitive products and services to our customers," said Anne M. Mulcahy, Xerox chairman and chief executive. "Today's difficult economic challenges require difficult decisions."
The cuts will result in a pretax charge against earnings of $350 million to $400 million in the fourth quarter. The charge includes severance costs and about $50 million associated with facility consolidations and closings.
Among the facility consolidations and closings, a call center in St. Petersburg, Fla., will be closed and consolidated with a similar operation in Lewisville, Texas. A call center in Irving, Texas, will be closed and consolidated with a similar operation in Nova Scotia, spokeswoman Christa Carone said.
Some small direct-sales offices will be downsized or closed around the country, Carone said. Those sales representatives will work from home.
Larger cuts
The charge is larger than the $100 million originally anticipated. Xerox wanted to accelerate the benefits of cost savings, Carone said.
Xerox, a Stamford-based maker of printers and copiers, will preserve its direct-sales force and research and development investments, Mulcahy said.
In the past two weeks, the company said it has launched voluntary and involuntary programs in the U.S. and Canada that are expected to reduce employment by more than 2,400 over the next three months. About 1,615 employees were laid off, while the balance involve buyouts and early-retirement packages, Carone said.
Xerox officials said it's too early to say how many jobs will be cut in Europe and developing markets.
Xerox has been hurt by stiff competition, a botched sales-force reorganization, sluggish sales and an investigation of its finances that led to a $10 million fine and a restatement.
Xerox implemented a turnaround plan more than a year ago that has resulted in more than $1 billion in annual savings, in part through job cuts and the sale of assets.
As of the end of September, Xerox's worldwide employment was 69,900, including 40,900 employees in the United States. Xerox had 92,500 employees at the end of 2000, Carone said.