Xerox Holdings Corp. has announced a new operating model and organizational structure to further the company's reinvention.

"The evolution of Xerox's reinvention aligns our resources in three key areas — improvement and stabilization of our core print business, increased productivity and efficiency through the formation of a new Global Business Services organization, and disciplined execution in revenue diversification," said Steven Bandrowczak, CEO, Xerox. "The shift to a business unit operating model is a continuation of our client-focused, balanced execution priorities and is designed to accelerate product and services, go-to-market and corporate functions' operating efficiencies across all geographies we serve."

Three key reinvention priorities and intended outcomes:  

Core Print Business:

• Simplify core products to align with the needs of economic buyers of today's hybrid workplace.
• Increase investment in a partner-enabled go-to-market model that supports how clients prefer to procure their print solutions.
• With partners, pursue strategic market share gains by increasing reach, improving cost to serve and enhancing profitability.

Global Business Services:

• Through simplification, drive enterprise-wide efficiency and scalability with centrally coordinated internal processes leveraging shared capabilities and platforms.
• Garner operating leverage and investment capacity for Xerox's growth segments through lower transaction costs.
• Improve quality for all business units and functions while focusing on continuous improvement of clients' and employees' experiences.

IT and Digital Services:

• Create greater organizational focus on Xerox's emerging digital services and IT services capabilities to accelerate revenue diversification toward markets with higher growth and profitability profiles.
• Implement a new multisegment organizational focus to drive internal alignment and incremental services penetration with existing and prospective clients.

New organizational structure to support strategic execution:

The company has redesigned and realigned its executive team to support the new operating model. Effective immediately, John Bruno will lead the enterprise alignment of print, digital services and IT services businesses. Louie Pastor returns to Xerox as chief transformation & administrative officer, charged with overseeing the Xerox Reinvention Office and the newly established Global Business Services organization. Flor Colon has been appointed chief legal officer and corporate secretary.

The new Xerox executive leadership team includes:

• John Bruno – president & COO
• Xavier Heiss – CFO
• Louie Pastor – chief transformation & administrative officer
• Deena Piquion – chief growth & disruption officer
• Jacques-Edouard Gueden – chief channel & partner officer
• Fred Beljaars – Chief delivery & supply chain officer
• Suzan Morno-Wade – Chief human resources officer
• Flor Colon – Chief legal officer & corporate secretary
• Chris Fisher – Chief strategy officer

In addition, Joanne Collins Smee, executive vice president and president, Americas, and Tracey Koziol, executive vice president of global offering solutions and chief product officer, have departed the company effective Dec. 31, 2023.

"Congratulations to our new executive leadership team, and my sincere thanks to Joanne and Tracey for their countless contributions to our company and culture," Bandrowczak said. "Our new operating model is a significant step toward accomplishing the goals we seek to achieve with our reinvention."

By implementing this new operating model, the company will take action this quarter, targeting a 15% workforce reduction. Proposed reductions will be subject to formal consultation with local works councils and employee representative bodies where applicable. Xerox is committed to providing transition support for affected employees.

In other news, Xerox's subsidiary, Xerox Business Solutions, experienced a security incident which was detected and contained by Xerox cybersecurity personnel. The event was limited to XBS U.S. Xerox is actively working with third-party cybersecurity experts to conduct a thorough investigation into this incident and are taking necessary steps to further secure the XBS IT environment. The incident had no impact on Xerox's corporate systems, operations or data, and no effect on XBS operations.  However, our preliminary investigation indicates that limited personal information in the XBS environment may have been affected. As per Xerox policy and standard operating procedure, it will notify all affected individuals as required. The data privacy and protection of Xerox clients, partners and employees are its highest priority.