What are the chances xerox direct employees will have a IRIF or VRIF?
20 replies (most recent on top)
Chances are high. The earnings transcript showed that XRX is committing to $450M in cost reductions in 2020. Recall 2019 Project OwnIt target of $640M and the human cost it inflicted. More of the same ahead.
Layoffs occurred in XDX today.
In the past VRIF was a good “heads up” to entice people to leave. It can cost less or more, many factors.
Less: lawsuits are far less likely with VRIF. Many of the IRIF actions have clearly violated US EEOC regs regarding discrimination.
Less: less reporting and legal burden and I think also restructuring charges
Agree with prior post - it’s more about money saved that cost, and more money is saved in a typical Xerox age discriminating IRIF.
From what I've seen in the past, VRIF packages have only been offered to those eligible to retire or able to bridge to retirement. I've always wondered if that violates any sort of age discrimination laws. I would hope not, since it's voluntary. If the VRIF turns into an IRIF, then there should be documented proof that older workers weren't targeted.
VRIF packages have been targeted in the past to workers over 50. It does not have to be offered to everyone.
If VRIF led to 10 younger employees taking the package, the annual savings for the company will be $600k ( assuming the each younger employee is paid on average $60k per annum).
With IRIF, the company will target 10 older employees and savings per annum will be more - $1.2m ( assuming the average older employee is each paid $120k per annum).
So if Xerox wants to show cost savings, they will go for IRIF.
This is what we are seeing today.
In what way is a VRIF a more costly option? Speaking for the US only, long ago, VRIF packages would offer a premium over the IRIF termination benefits. The last few VRIFs that happened in Webster, I do not think there was any difference between these. The VRIFs were more public, and reduced the ability of the company to target reductions in specific areas. But economically more costly? The only area I can think of that might be different is the bridging option for those with RIGP benefits. But I am curious, are there other cost advantages to an IRIF over a VRIF?
VRIF seems like a thing of the past, more costly option. The big shots want it all for themselves.
I'm kinda surprised there hasn't been layoffs due to all the Covid-19 stuff. I'm not saying there should be, but due to the cra88y acts of Xerox, I'm skeptical about how quiet the are during this time.
Unfortunately, so very true.
Xerox Corp has proven time and time again it is very good when it comes to screwing over their most valued asset ” the employee.”
I would not be surprised to see a scheme develop that justifies or decriminalizes "exclusion" (rif) of senior employees as part of a covid return criteria/excuse. It may be touted as being protective to that class but it would in reality be the 'shaft'. In the U.S., anyway.
Things so bad Management doesn't know which way to turn..Heard panic button not even working ...
I'm very surprised we haven't seen anything significant this year. I know there have been some minor reductions and/or rebadging, but nothing across the board. I was expecting to see in the 1st quarter a 10-20% cut, especially because of the pandemic. Do we really have enough cash to keep everybody we have now for much longer? Hopefully yes. But I don't see that.
Really? Did you read the results?
High. Savings from OneIt not fully realized yet, stock in toilet, Wall Street starting to realize it’s not time to play shorts when so much other value exists elsewhere with a fraction of the XRX risk, revenue projections going lower, earnings report just released tells a story, etc.
Unfortunately, 100% (project own it)
Severance can go to 0 weeks, Xerox Axe Holdings is good at one thing, the screw and cut caper.
I disagree. Furlough is supported in UK by the government and Xerox took advantage. Not in the US. So layoffs are probably coming here. IRIF.
Unlikely, Xerox is broke. Cheaper to furlough or reduce hours/salary as already demonstrated.