Xerox, the world's top supplier of digital printer and office equipment, has warned that its first-quarter earnings will fall far short of its earlier forecast. The company said a slowdown in technology spending was hitting its revenue.
Xerox said revenue in January and February was 18% down on the same period a year earlier. It also referred to poor results from its venture with Fuji, which handles sales for the Xerox group in Asia.
With technology spending slumping, Xerox forecast first-quarter earnings of 3 cents to 5 cents per share, compared with an earlier outlook of 16 cents to 20 cents.
As a result, Xerox said it would seek to cut around $300m in costs, on top of the $250m in savings it previously planned. It did not say where the additional savings would come from, but its restructuring late last year included about 3,000 job cuts.
