Xerox is reporting a drop in profits and sales for its 4th quarter compared to a year ago.
In the data released on Thursday, Xerox reported a net loss of $58 million, down $179 million from a year ago. The company said the quarter includes restructuring and related costs.
Revenues totaled about $1.77 Billion, which was down more than 9% compared to last year’s 4th quarter.
For 2023 overall, net profits totaled $1 million, compared to a $322 million loss in 2022.
Revenues of $6.89 billion in 2023, were down just over 3% compared to 2022.
Xerox is forecasting a decline in revenues this year of 3% to 5% in constant currency.
Steve Bandrowczak, chief executive officer at Xerox, said that the company took steps last year to simplify its business and he said that while that impacted revenues, “it laid the foundation for successful executive of our reinvention.”
In early January, Xerox announced restructuring efforts and said that its new ‘Reinvention and Operating Model’ targets a 15% workforce reduction.
There was no immediate indication on how many jobs would be cut in the Rochester area, many of which are in the town of Webster. The company currently employs more than 1,500 workers in the Rochester area.
Xerox issued a statement earlier this month saying that the decision to reduce the workforce “was a difficult but necessary step toward establishing long-term viability for Xerox.”
George Conboy, chairman at Brighton Securities, said that the 4th quarter was a tough one for the company, but he did say that cash flow was up a bit and he gives Xerox management some credit for being able “to still squeeze profits from time to time.”
Conboy said it’s unfortunate that Xerox has to cut staff, but he added that the company seems dedicated to cutting costs so that even on lower sales, “they can survive and occasionally turn a profit.”
