In its Q1 results just announced, Xerox noted a $36m (£28.8m) inventory impact related to “the exit of certain Production Print manufacturing operations”.

The presses are manufactured at Xerox’s Webster facility in New York state.

A Xerox spokesperson told Printweek: “The decision to cease print engine manufacturing operations in Webster aligns with our [January] Reinvention announcement and our priority to simplify our core products to align with the needs of our clients.

“Order fulfillment for iGen and Nuvera is expected to continue through 2024 or while inventory lasts. Xerox will provide industry-leading support for these platforms throughout the life of their contracts.”

The spokesperson described the iGen and Nuvera as “two legacy platforms that helped create the Production Print industry”.

Print engine manufacturing will cease on 30 June. The Webster plant will continue to make Xerox toner and photoreceptors, and will also act as a spare parts facility. The number of jobs impacted at the plant, understood to employ around 1,500 in total, was not disclosed.

Speaking to analysts at the Q1 investor briefing, president and COO John Bruno said: “This quarter, we decided to explore strategic options for our production print equipment manufacturing operations, including exiting manufacturing of certain product families.

“By more closely aligning the mix of production products and services with the need of our production clients, we will have greater capacity to offer value-added services such as automation, intelligence assistance, and personalisation.”

He added: “Our dedication to the production print market remains unchanged and we expect the rationalisation of our offering to improve our differentiation and distinctiveness in this important market.

“Accordingly, we recently signed an agreement with a third-party provider of high-speed continuous feed inkjet machines to offer their family of inkjet presses for the printing and graphic art industries to our clients.”

Printweek understands that at Xerox’s ‘Production Print Week’ event, held last week in Uxbridge, customers and partners in attendance were told that the new inkjet partner is Screen.

Xerox originally brought its ‘FutureColor’ technology to market in 2002 with the launch of the iGen3.

The current iGen5 was launched in 2015. The B3-plus device prints at up to 150ppm in CMYK with an optional fifth colour and extra-long sheet capability.

The A3-plus Nuvera family of sheetfed toner presses prints at up to 127ppm. It was first launched in 2004. 

The newer Iridesse and Versant toner devices are made for Xerox by former joint venture partner Fujifilm, which also makes its EA toner.

Xerox’s production print range also includes its own-brand B3 sheetfed inkjet press, the Baltoro.

An industry source commented: “At Hunkeler InnovationDays there was nothing new on the engines, it was all about software.

“You can see why they decided not to exhibit at Drupa.”

In Q1 Xerox missed its sales and profit targets.

Turnover was down 12.4%, or 13.2% on a constant currency basis at $1.72bn. Adjusted operating margins fell from 6.9% to 2.2%.

Equipment sales were down 25.8% (26.3% at constant currency) at $290m.

The prior year figures had also been boosted by a portion of the $100m royalty payment from Fujifilm, paid upfront for the use of the Xerox name over a two-year transition period that came to an end in April 2023.

CEO Steve Bandrowczak commented: “This quarter, Xerox orchestrated one of its most intense periods of structural change in recent history, continuing the hard work required to reposition our business for long-term, sustainable growth. We implemented comprehensive and strategic operating model changes to align our organisation more closely with our buyers’ needs and improve efficiency.”

He said that despite the results being below expectations, he had “full confidence we have the right team and the right strategy to execute Xerox’s Reinvention and deliver on our adjusted operating income targets.”

In January Xerox announced that it would cut 15% of its workforce worldwide – around 3,000 roles – with a new operating model focused on business units rather than geographies.