Xerox has become the latest technology heavyweight to issue a major round of layoffs.

The company revealed on Thursday that the sagging economy has forced a reorganisation plan which could see some 3,000 jobs eliminated. Such a cut would remove five per cent of Xerox's total workforce.

News of the cuts came as the company revealed its quarterly earnings report. Xerox managed to pull in a $258m profit with help from a surge in sales to developing countries.

However, sales in the US took a hit and the company expects its numbers to follow suit as the economic downturn continues.

"The resulting shift in revenue mix does put pressure on our gross margin," said Xerox chairman and chief executive Anne Mulcahy.

"To better align our operations with these changes, we are accelerating actions to reduce our cost base and drive operational improvements across the board, giving us more flexibility in our business in this unpredictable economy. "

News of the cuts follows an announcement from Yahoo that its own economic worries will lead to 1,500 layoffs. Earlier this month, chipmaker Micron revealed that it would be cutting roughly 3,000 jobs.

Earlier this week Michael Dell said that his company was nearing the end of its major 9,000-person layoff campaign.