Xerox To Lay Off 95 Orlando Employees, Brexit Risks Loom
Zacks Investment Research | Jun 30, 2016 06:04AM ET
Information technology services provider Xerox Corporation (NYSE:XRX) recently revealed its plans to lay off 95 employees in its healthcare division in Orlando. Although the company did not divulge the reason behind the strategic decision, it refused to attribute the lay-offs to its split into two independent entities.
The affected employees are part of the Xerox State Healthcare LLC unit in Orlando. This Xerox subsidiary offers healthcare program administration services and administers Medicaid, state children's health insurance programs, long-term care programs, and pharmacy benefits management programs. It also offers care coordination and management services along with health information analysis and fraud and abuse protection services.
Corporate Statement
In a statement issued by the company, the affected employees were encouraged to seek possible employment opportunities in other business divisions. The statement read, "Unfortunately, due to a business decision of a single client, we are making the necessary yet difficult decision to reduce our workforce…. We realize this affects individuals and every effort is being made to ensure that all employees are treated fairly.”
Such unfortunate yet bold decisions seemed to be the call of the hour as the company aimed to improve its revenues and lower the operating costs.
Grappling with Challenges
Xerox has been grappling with slow demand in its printing business for years, while its attempts to leverage the business process outsourcing market also failed to lend growth momentum. The company also endured a number of slip-ups in its Medicare and Medicare information services for several government agencies across the U.S.
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