Xerox Corp posted disappointing quarterly results as demand for its more expensive office printing equipment systems slowed and it said it would cut some 5 percent of its workforce to trim costs. The world's top supplier of digital printer and document management services plans to take a $400 million charge in the fourth quarter due to the accelerated cost cutting plans, which affects about 3,000 jobs world-wide.
Xerox also issued a fourth quarter forecast that fell short of Wall Street estimates, sending the Norwalk, Connecticut, company's shares down 4 percent in pre-open trade.
The weak US economy has spurred some clients to become hesitant to purchase higher-end technology. As a result, the company has marked increased sales of lower-priced products, hurting gross margins. "To better align our operations with these changes, we're accelerating actions to reduce our cost base and drive operational improvements across the board," Xerox chief executive Anne Mulcahy in a statement.
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