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Norwalk-Based Xerox Cuts 4,800 Jobs In First Quarter

Ursula Burns, of Norwalk, is the first African-American woman to lead a Fortune 500 company.
Ursula Burns, of Norwalk, is the first African-American woman to lead a Fortune 500 company. Photo Credit: Xerox

NORWALK, Conn. — Norwalk-based Xerox has cut 4,800 jobs in the first quarter of the year, spending about $124 million in severance costs, the company said in a statement Monday.

During first quarter 2016, Xerox "recorded net restructuring and asset impairment charges of $123 million, which includes $124 million of severance costs related to headcount reductions of approximately 4,800 employees worldwide and $2 million of lease cancellation costs," the company said in a statement .

Xerox is continuing with its plan to carve out its outsourced business processing operations as a separate company by the end of the year. The company also expects to pay $300 million in restructuring costs this year.

In January, CEO Ursula Burns announced plans to spin off Xerox’s business processing operations as an independent company. The company bolstered the unit in 2010 through the acquisition of Affiliated Computer Services, which is based in Dallas. Xerox intends to file details on the split with the Securities and Exchange Commission by July with the goal of completing the process by the end of the year.

Xerox has not announced the name or headquarters location for the new company.

Xerox recorded a $34 million profit for the first quarter or 3 cents a share, down from $225 million or 19 cents a year ago, as revenue dropped 4 percent to $4.3 billion. The company cut its earnings expectations for 2016 to between 45 cents and 55 cents a share, down from previous expectations of 66 cents to 76 cents.

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