Xerox’s Horrible Management Finally Crushes the Company

Xerox said that the document technology company will handle document management and document outsourcing.

Xerox announced as well that it is aiming to save more than $2.4 billion in its strategic transformation programs through all its segments over the upcoming three years.

Billionaire activist-investor Carl Icahn gives an interview on FOX Business Network’s Neil Cavuto show in New York February 11, 2014. In recent years, he has taken stakes in technology-related companies including Apple Inc., EBay Inc., and Netflix Inc., and agitated for changes such as share buybacks and spinoffs, which he argued would create shareholder value. Under the proposed plan, Icahn will get three seats on the services company’s board, The Wall Street Journal reported. Additionally, a person selected by Mr. Icahn will observe and advise the Chief Executive search committee for the services firm. A company spokesman had earlier declined to comment on reports of a split.

She also said that company and the board of directors would not rule out a possible sale.

The Xerox deal is expected to be completed by the end of this year.

For decades, Xerox built its business by inventing new machines-such as the photocopier and the laser printer-and pushing companies to buy more office machines supplied with pricey ink and toner.

Xerox reported fourth-quarter revenue of $4.7 billion, in line with the average analyst estimate.

Xerox shares fell 1.7 per cent in extended trading in NY to US$9.07. Revenue, however, dropped by 8%, to $4.65 billion.

Xerox employs around 650 people in three different business in Ireland. “Similarly, Document Technology was the industry equipment sales revenue market share leader for the 24th consecutive quarter and, through our continued focus on performance and productivity, maintained its strong margins”.

The split comes as a result of a review of the structural options that Burns announced past October, although at the time, she said she preferred to keep the business together.

Xerox has been innovating printers and other hardware since its founding in 1906, when it began as The Haloid Photographic Company.

Burns discussed the company’s decision to split Friday morning on CNBC’s Squawk Box TV show, saying that Icahn did not drive the process to split up the company. I think, like HP/Hewlett-Packard Enterprise, that Xerox has a sluggish business at its heart that won’t necessarily be improved by the split.

While Burns acknowledged that her role in the new companies has yet to be clarified, she was quick to point out that the figures reflect the urgent need to adapt to an increasingly agile document management market.