Fuji Xerox New Zealand (FXNZ) is aiming to shed around 100 staff by the end of July as it accelerates integration plans as a result of the COVID-19 pandemic.
The company has briefed staff that it needed to accelerate the planned integration of its expanded operations, now including acquisitions CSG and CodeBlue, which was planned to occur in 2020.
Peter Thomas, managing director of Fuji Xerox New Zealand, said the COVID-19 pandemic demanded that process be expedited to make the business as strong as possible.
The company-wide integration commenced in late May is now expected to be completed by early July.
“This is a difficult and stressful time for all our staff. We will be providing those directly affected by the proposal with additional support throughout this process," Thomas said.
Currently FXNZ employs approximately 530 staff, with a further 370 employees at CSG and CodeBlue in New Zealand.
"Originally, we had allowed for up to 12 months to integrate our companies in a phased manner, however the impact of COVID-19 means we now need to accelerate this process and there will be a reduction in headcount across the merged entities as a result of this activity," Thomas said.
The acquisition of CSG and CodeBlue was a significant milestone and strategically enabled FXNZ to diversify its offerings to SMEs and provide a wider array of enhanced office technology solutions, Thomas said.
FXNZ had taken several measures over the past two months to support staff throughout the Level 4 and 3 restrictions, such as applying for and receiving the government’s wage subsidy.
This enabled the company to continue to pay staff 100 per cent of normal salary.
Further measures were also taken to reduce operating costs, but immediate decisions had to be made to protect the business.
“Like all other New Zealand companies our operating and economic landscape has shifted rapidly and dramatically," Thomas said.
"During the COVID-19 lockdown, our print volumes declined by up to 85 per cent. This will eventually bounce back somewhat as more companies return to their offices, but we do not believe that print volumes will ever recover to pre-COVID levels."
As a result FXNZ's revenue forecast has been significantly reduced as our customers and businesses find ways to adapt their day-to-day ways of working.
"This is why the acquisition of CSG and CodeBlue is all the more important to diversify how we better support our clients’ evolving needs,” Thomas said.