Xerox Plans More Layoffs
Xerox
plans to use a $400 million tax windfall to lay off more workers.The
printer and copier maker said the tax benefit was unexpected, according
to a report in The Wall Street Journal that cited Xerox’s latest
quarterly filing with regulators.The benefit should be more than enough
to cover Xerox’s expected charges of $125 million to $175 million by
year’s end for the layoffs. The company didn’t specify how many workers
it would lay off.The plan jibes with Xerox’s recent practice of cutting
its workforce when it gets one-time gains from accounting charges or
wins tax disputes, the Journal noted.Xerox shares ended Friday up 3
cents at $14.41
Xerox may fund job cuts with tax benefit
NEW
YORK Xerox Corp. , a provider of printers and offices services, said
in a regulatory filing that it may use part of a more than $400 million
tax benefit to lay off an unspecified amount of workers.The company
said in a filing on Friday that the restructuring and cost savings from
the benefit would take place in the third and fourth quarters of 2006,
and cost between $125 million to $175 million.”The actions and
initiatives we are currently considering are primarily related to
headcount reductions across all geographies and segments,” the company
said in the filing. “However, we have not yet finalized or committed to
any actions or initiatives.”The company said the benefit came at the
hands of the U.S. Joint Committee on Taxation, which recently completed
its review of Xerox’s 1999 to 2003 Internal Revenue Service audit.Xerox
has spent $1.09 billion since 2002 on restructuring programs, according
to the filing.Xerox has struggled to boost revenue amid pricing
pressures from rivals such as Canon Inc. and Hewlett-Packard Co.On July
25, Stamford, Connecticut-based Xerox said quarterly revenue edged
higher on solid sales of color printers and supplies, fueling
better-than-expected profits.