Xerox beats forecasts but will cut jobs

OFFICE equipment giant Xerox posted higher-than expected quarterly profit yesterday, but warned it would cut 2,500 jobs over the next year as part of a restructuring linked to an acquisition in 2009.

Sales at US-based Xerox climbed 48 per cent to $5.43bn (£3.46bn) thanks to its purchase of Affiliated Computer Services. Without last year’s acquisition, revenue rose two per cent.

The company said there was growth of 13 per cent in equipment sales and that new signings for service contracts rose 26 per cent, suggesting to analysts that businesses are spending again on office equipment.

The job cuts will come in the manufacturing and supply chain, back office and R&D operations, the firm said yesterday, and will contribute to a $400m restructuring charge this year.
Shares in Xerox closed up 1.1 per cent at $11.21 in New York trading.