The troubled US office equipment maker, Xerox Corporation, said yesterday it would cut 4,000 jobs in the first quarter and warned of possible additional reductions in its workforce before the end of the year. The job losses, however, are not expected to affect Xerox operations in Ireland, a spokesman said. The company employs 1,600 people in Dublin and 1,000 in Dundalk, Co Louth.
Company executives assured analysts yesterday that they were on track to return to profitability in the third quarter and would report an overall profit for 2000, through asset sales, cost reductions and plans to exit the financing business. "Of the 4,000 incremental reductions, there will be an impact in Europe but there is no reason to believe at this time there will be an impact in Ireland," a spokesman for Xerox's European operations said.
"One can never say never but the strategic intent in Ireland is not changed," he said.
He added that Xerox still planned to increase the Irish workforce to 2,000 in Dublin and 2,100 in Dundalk by 2003. Xerox manufactures advanced technologies in Dundalk, including print heads, ink tanks and silicon for inkjet printers. Its Dublin base provides financial services and the Xerox welcome centre for Europe.
The Connecticut-based company yesterday reported a worse-than-expected loss per share of 31 cents and total losses of $198 million (€215 million) for the fourth quarter of 2000. Xerox has suffered from weak sales during the last decade while rivals Hewlett-Packard, Canon, Sharpe and Ricoh have gained ground.
After HewlettPackard overtook Xerox last year in sales of laserjets, deskjets, scanners and supplies, the company brought back former chief Mr Paul Allaire to take over the helm.
Xerox strengthened its cash position in the fourth quarter and ended the year with more than $1.7 billion in cash, Mr Allaire told analysts at company headquarters. Ms Anne Mulcahy, Xerox president and chief operating officer, told callers: "We are aggressively implementing our cost-reduction plans, which will yield more than $1 billion in savings by the end of 2001.
"Since the third quarter of 2000, we have taken actions that account for more than one-third of this target, including the reduction of approximately 2,000 jobs worldwide in the fourth quarter. This activity will intensify with the reduction of 4,000 jobs in the first quarter and additional reductions through the balance of the year." Xerox already let go 5,200 workers last year and 10,000 employees worldwide in 1999.
Since announcing a restructuring in October, it has shed more than 2,000 jobs worldwide.
Hewlett-Packard Co said yesterday it was planning to lay off 2 per cent of its global workforce, or approximately 1,700 workers, as a result of the restructuring of its sales and marketing activities. Affected employees will be notified in February, and allowed apply for other jobs at the company, said the spokesman.
--(AFP)
