Xerox cut 900 jobs and reduced severance payments in Q3 as part of ongoing restructuring efforts under Icahn-appointed leadership. In addition to these cuts, Xerox reduced severance in 2018, paying out $40 million in Q3 compared to the $39 million paid for the 600 layoffs in Q3 2017.
In continued cost-cutting efforts, Xerox announced in October that the company would end some health benefits for non-union retirees by the end of the year. The changes reportedly differ based on the employee’s retirement date and only affect retirees who were salaried such as management positions. Union retirees’ health insurance status will not change as they are covered by their contract, according to a union rep.
While Xerox did beat Q3 estimates for profit – in part due to these cost reduction efforts – the company fell short on revenue, leaving some to speculate on expected Q4 layoffs. Xerox reported Q3 revenue of $2.4 billion which is down 5.8% with equipment down 3.8% and post sale down 6.4%.