said it will record a fourth-quarter pretax charge of $350 million to $400 million related to job cuts and the company's ongoing restructuring moves.
The charge will cover severance costs for workforce reductions and about $50 million associated with facility consolidations and closings. Xerox plans to cut about 2,400 jobs through voluntary programs and layoffs in the U.S. and Canada in the next three months.
Xerox has implemented cost-reduction actions in the past two years that account for more than $1 billion in annualized savings. The company said the latest restructuring action will help it reach its target of an additional $1 billion in annualized savings.
At the end of September, Xerox, based in Stamford, Conn., had 69,900 workers worldwide, including 40,900 employees in the U.S.
Xerox, which recently posted a
better-than-expected profit in the third quarter, has been the subject of
regulatory scrutiny in recent months amid questions about its bookkeeping. Earlier this year, the
Securities and Exchange Commission
charged Xerox with using irregular accounting to boost revenue from 1997 to 2000.
In June, Xerox agreed to pay a $10 million penalty but didn't admit or deny any wrongdoing. It also restated about $1.9 billion of a total of $92.5 billion in revenue reported during that period.
Shares of Xerox ended
New York Stock Exchange
trading up 2 cents at $8.05.