Xerox to chop 4000 staff after Q4 loss

And HP to lay off 1700

By Linda Harrison in New York • Get more from this author

Posted in Business, 29th January 2001 23:26 GMT

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Xerox is to lay off 4000 staff after reporting losses of almost $200 million for Q4.

The printer company said today the jobs, which represent around 4.5 per cent of worldwide staff, would go during the first quarter, with more to follow later in the year.

It recorded a $198 million loss, or a loss of 31 cents per share, compared to a profit of $294 million, or 41 cents, a year earlier. This was its second consecutive quarterly loss. Revenue at the Connecticut-based company slipped 13 per cent to $4.83 billion.

"We are executing every element of our turnaround plan to yield the fundamental changes in our business that will deliver long-term benefits," said Xerox chairman and CEO Paul Allaire.

Allaire said he expected the company to get back into the black in the second half of the year.

Meanwhile, PC giant Hewlett-Packard is to lay off around 1700 staff, or two per cent of its total workforce. The move will affect its sales and marketing division, and is the result of a restructure which has led to job replication, the Californian company said.

HP staff will learn of their fate next month, and will get to apply for other jobs at the company. ®