Xerox Corp., the world's largest copier maker, said yesterday that it will eliminate 2,400 more jobs and close customer service centers and other facilities in North America. The cuts will cost the company up to $400 million this quarter.
Xerox said it plans to cut more jobs in Europe after talks with labor and government officials. The smaller payroll will help Xerox meet a goal of saving an additional $1 billion. The staff cuts will cost at least $350 million.
Chief executive Anne M. Mulcahy is trying to raise cash to meet debt obligations she inherited after taking over 15 months ago, including about $9 billion coming due in the next three years. Xerox is shrinking to ensure profit because sales have dropped in the past several years, investors said.
"The more costs go down, the more of a cushion the company will have to produce profits," said Brian Eisenbarth, who has about 900,000 Xerox shares among the $1 billion he helps manage at Davidson Investment Advisors.
Shares of Xerox closed at $8.05, up 2 cents, yesterday on the New York Stock Exchange. They have fallen about 23 percent this year.
Spokeswoman Christa Carone wouldn't comment on how much these job cuts would reduce expenses. She said the savings would probably come in 2003.
The Stamford, Conn.-based company is closing a call center, which handles customers' calls, in St. Petersburg, Fla., and moving that work to Lewisville, Tex. It's closing another center in Irving, Tex., and moving the work to Halifax, Nova Scotia.
Total job cuts worldwide could reach 5,000, Caroline Sabbagha, an analyst with Lehman Brothers, said in a report.