Xerox cost cutting drive sees jobs go

Xerox: Cutting costs to boost profits

Office equipment giant Xerox has unveiled further job cuts, three weeks after touting a return to "strong profitability".

The firm, which was earlier this year fined $10m for overstating accounts, said it would cut 2,400 jobs over the next three months.

The cuts, some of which had already been announced, would underpin the firm's recovery, chief executive Anne Mulcahy said.

"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."

Cost cuts

The cuts, part of a restructuring which will cost Xerox $350-400m, come towards the end of a bitter year for the firm.

The company was April charged by the SEC, the US financial watchdog, with misstating profits, and in June admitted it overstated earnings and sales.

In July, Xerox admitted its Indian subsidiary made "improper payments" to win government contracts.

But the firm, the world's largest photocopier company, last month said it was confident of "strong full year profitability", thanks to cost cuts and new products.

"The restructuring announced today will contribute to the company's target of an additional $1bn in annualized cost savings," Xerox said on Tuesday.

Xerox shares closed up $0.02 at $8.05 in New York on Tuesday.