Xerox Shares Decline After Workforce Reduction Announcement
Xerox (XRX) shares continue to decline after announcing a 15% reduction in its workforce. This decision is part of the company’s transformation strategy to improve and stabilize its core print business. This move, investors do not seem impressed, with the stock falling by 12%. Analysts have also downgraded Xponential Fitness (XPOF) to “Neutral” and lowered its price target from $21 to $13 per share.
The news of Xerox’s workforce cut has not had the expected positive impact on the stock. The workforce reduction, which could affect around 3,000 employees, highlights the challenges the company faces in achieving top-line growth. This could explain the negative reaction from investors, as there are currently no buy ratings for Xerox on Wall Street.
In other news, Xponential Fitness has also taken a hit in the market. Piper Sandler downgraded the franchisor of fitness brands to “Neutral” from “Overweight” and lowered its price target to $13, the lowest on the Street. The downgrade is due to doubts about the company’s ability to achieve long-term growth and margin targets. Reports questioning management’s credibility have also been a concern for investors, leading to a 44% decline in the stock last year.
Xponential Fitness is known for its popular brands such as club Pilates, Rumble, and Pure Barre. The stock has been on a downward trend since August, when Piper Sandler initiated coverage with an “Overweight” rating. Now, with the downgrade to “Neutral,” the company’s performance and management’s credibility will be closely monitored by investors.
Xerox’s workforce cut and Xponential Fitness’s downgrade have not had a positive impact on their respective stocks.
