The world's largest printing and document services company announced plans to cut 5 percent of its workforce and lowered its forecast for the next quarter.

Describing current economic conditions as a "tough business environment," Xerox CEO Anne Mulcahy said that by trimming 3,000 jobs over the next six months, the company will save $200 million, according to a Reuters report.

Xerox's third-quarter net income was $258 million, or 29 cents per share. But excluding onetime charges and the settlement of tax benefits, the company earned 26 cents per share. Most analysts were expecting profits of 28 cents per share.

Equipment sales declined 3 percent, as some of Xerox's U.S. customers either cut back on printing services, or turned to in-house management, or opted for lower-priced equipment, hurting the company's gross margins as the economy slowed, Xerox reported during its earnings call with investors and analysts.

The company will take a $400 million charge for the next quarter as a result of the staffing cutback, and expects earnings between 34 cents and 36 cents per share. Analysts had been anticipating fourth-quarter earnings of 43 cents per share.