Why Xerox Stock Tanked Today

Xerox Holdings Corporation XRX shares traded lower on Wednesday after the company announced a 15% workforce reduction.

What To Know: In the process of deploying its new operating model, Xerox announced that it will be targeting a 15% workforce reduction.

The workforce reduction is part of the company's new operating model and organizational structure which aims to advance its Reinvention.

Xerox also outlined the three key priorities and intended outcomes of the Reinvention, pertaining to the company's Core Print Business, Global Business Services, and IT and Digital Services.

Additionally, the company stated that it has redesigned and realigned its executive team to reinforce strategic execution, a decision which has been made effective immediately.

"The evolution of Xerox's Reinvention aligns our resources in three key areas – improvement and stabilization of our core print business, increased productivity and efficiency through the formation of a new Global Business Services organization, and disciplined execution in revenue diversification," said Steven Bandrowczak, CEO at Xerox.

"The shift to a business unit operating model is a continuation of our client-focused, balanced execution priorities and is designed to accelerate product and services, go-to-market, and corporate functions' operating efficiencies across all geographies we serve."

The stock's situation was worsened on Wednesday as a rise in Treasury yields weighed on the tech sector.

Related Link: What's Been Happening With Juniper Networks Stock?

XRX Price Action: Shares of Xerox were down 12.2% at $15.84 at the close of the market, according to Benzinga Pro.

Image by Michal Jarmoluk from Pixabay