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Xerox to cut thousands?
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March 25, 1998: 6:35 a.m. ET
Copying king's cuts would slash 11 percent of work force; 2,000 in U.S.
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NEW YORK (CNNfn) - Xerox Corp. is preparing to cut at least several thousand jobs over the next two years in a bid to trim costs and compete more effectively with emerging rivals such as Hewlett-Packard Co., according to published reports.
The deepest cuts are likely to occur in Xerox's Rochester, N.Y.-based Customer Operations unit, which employs about 22,000 people and generates most of the company's United States sales, The Wall Street Journal reported.
Xerox may eliminate as many as 2,000 workers in the Rochester area, where Xerox is headquartered, according to a Tuesday report in the Rochester Democrat and Chronicle.
Xerox is reportedly expected to announce the cuts during the week of April 6.
A spokeswoman for Xerox declined to comment on the article, citing a policy of not addressing rumors or speculation.
In recent months, Xerox has embarked on an ambitious quest to sell and service digital copiers that can be plugged into integrated office computer networks.
In January, the company posted fourth-quarter net income of $525 million, up 23 percent from the year-earlier level of $426 million. At the same time, Xerox's new president, G. Richard Thoman, has vowed to drive down the company's sales, general and administrative expenses, which have remained flat relative to revenue.
"Companies that are growing the fastest are the ones that are the most fanatical about costs," Thoman told the Journal. "We've got the machine working on 6.5 out of eight cylinders."
Shares of Xerox (XRX) closed up 1/4 at 96-5/8 in Tuesday trading on the New York Stock Exchange.
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Xerox Corp.
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