Back to Predicting Layoffs - The FACTS - post regarding Xerox Corp. layoffs

Back to Predicting Layoffs - The FACTS

In terms of actual layoffs, I think we need to go back to the facts (as reported on 10-Q SEC Filings):

Total Layoffs per Year:

2014: 4,000

2015: 1,700

2016: 3,250

2017: 2,600 (2,100 in first 9 months)

2018: 1,850 through 9 months

The reality is, John V (and Carl Icahn) have some catching up to do vs. Jeff Jacobson. Actual "Pink-Slips" are down vs. 2017. Now, it feels like a lot more this year due to the number of people that are "choosing" to retire early, and some of the recent changes in pensions, benefits, etc are accelerating the reduction in force (by choice). And yes, the new medical coverage this year is terrible.

But, let's continue to look at the numbers as reported. This is all public information.

The average severance package costs $60,000 per person. Now, these severance packages are not nearly as rich as they were in late 2016/early 2017 ($100-$120k each) due to the reduction of health benefits after termination.

So far this year, Xerox has spent the following on Severance Packages:

Q1: $24 Million

Q2: $40 Million

Q3: $40 Million

Q4: ????

Since 2015, Xerox has averaged $40 Million per quarter in packages. So, with all this info, what can we expect? My Guess, another 650-700 people laid off in Q4.

If that ends up being the case, that will be 100 people fewer than 2017 under Jeff Jacobson.

I know people are losing their jobs, and it may feel like the sky is falling. But, the reality is that it's no different than it was 1 year, 2 years or 3 years ago...and it is definitely no worse (in terms of layoffs) with John V and Carl Icahn.

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thanks for sharing the numbers

thanks for sharing the numbers. Were those Doc Tech WW employment? I think overall the U.S is suffering way more than than the 7% reductions indicates, for example finance functions were moved to Philippines and Guatemala beginning in 2015. Those hires are employees, but displaced hundreds of US workers.

It appears that leadership has been doing gymnastics with Icahn's legal team to avoid WARN notices. Thus, how many terminations have been due to suspect performance issues or simply riding a group of employees out the door?

I have heard that a workforce reduction of 20% or more is the goal in the US by 2019 Q2; but, it maybe higher if the numbers continue to deteriorate further than anticipated and that targeted 'restructuring' with Xerox in Europe as run into a wall due to their irksome employment law and Work Counsel requirements.

Hey @W0VxvHI-jvv,

Total Employment at the end of each Quarter:

Q3/18: 33,200

Q2/18: 34,300

Q1/18: 34,700

Q4/17: 35,300

Q3/17: 36,100

Q2/17: 36,900

Q1/17: 37,200

Q4/16: 37,650

There have been 4,450 layoffs since the split of ACS/Conduent. There were 2,650 layoffs in 2017 (7% of the workforce), and Xerox is on track to layoff 2,500 in 2018 (another 7% of the workforce).

Numbers Guy, were you counting VRIFs in the previous quarters? There were quite a few who took advantage when packages were offered. Also, these time periods included warehouse shutdowns, which affected a few hundred people. What the numbers probably didn't count in addition to reassignments mentioned in the last post to GIS are outsourced functions (European warehouses, for example), like what happened when much of engineering was outsourced to HCL.

The best indicator of how many people have left (either voluntarily or IRIF'ed) will be to compare Y/Y employment numbers.

There is also a difference between IRIF and VRIF...

This doesn't include the number of people with a directed reassignment to GIS. We are all "one company" but I think we can all agree that's the same as being handed a pink slip, without being labeled a layoff,

How does the average severance package cost $60k if they cap it at 12 weeks? We’re the Q1 and Q2 severances that much higher?

The original post numbers only apply to the Document Technology side of the business back when Xerox/ACS had 135,000 employees worldwide. The ACS layoffs were significantly higher during this same time period, but the layoffs I show are only the DocTech side of the business.

I agree there are a number of things that are concerning about the current state of the business, but this site is focused on Layoffs within the organization, and the reality is that the number of layoffs has actually decreased.

So you really shouldn’t be comparing any numbers when we were combined with Conduent. We were a much larger company then, and a majority of those layoffs would have come from that side.

The other concerning thing is the layoffs across the board, even in successful groups. Those paying attention know it is different this time. To ignore Icahn’s past and strategy would be ignoring some important factors. That, tied with the benefit slashes and lack of any strategy, are some pretty damning reasons to be concerned.

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