Xerox will lay off 15% of its workforce as the struggling digital printing company moves to cut costs and Grayson  Prestonjump-start growth. 

In announcing the cuts, Xerox said Wednesday it is adopting a new operating model and organizational structure aimed at boosting its core print business, while also forming a new business services unit. CEO Steven Bandrowczak said in a statement that the shift will enhance the company's ability to efficiently bring products and services to market, labeling the strategic pivot at Xerox a "reinvention."

As of October 2023, Xerox had roughly 20,000 employees, according to the company's website.

The company also said it is shuffling its leadership team to drive the company's new approach. John Bruno, president and chief operating officer at Xerox, will lead the enterprise alignment of the company's print, digital services and tech services business. Louis Pastor, Xerox's chief transformation officer, will oversee the new global business services organization. 

Xerox shares fell more than 10% in morning trade to $16.19. Although the company is profitable, reporting net income of $77 million in its 2023 third quarter, Xerox's growth has stalled in recent years.

Nearly 30% of companies reported layoffs in 2023, while 21% said they will likely make cuts this year, according to a recent survey by outplacement firm Challenger, Gray & Christmas. 

Hiring across the U.S. remains solid, with the nation's unemployment rate at 3.7%, although job growth is cooling. 

Alain Sherter

Alain Sherter covers business and economic affairs for CBSNews.com.

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