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Mega deal set to reshape local Fuji Xerox landscape

Friday, 02 February 2018
By Print 21 Online Article
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Fujifilm’s $6 billion deal to amalgamate Xerox and Fuji Xerox into a new Fuji Xerox business will see ten thousand jobs cut across FX subsidiaries in the Asia Pacific region.

Fujifilm said “personnel reductions of 10,000 people domestically and overseas” in its Fuji Xerox business by March 2020 were part of a cost-cutting package aimed at saving 50 billion yen ($US460 million) in the face of an “increasingly severe” market environment for office printers.

No further details of the job cuts have been announced. Fuji Xerox Australia has been contacted for comment.

The deal comes at a challenging time for both local Fuji Xerox and Fujifilm operations, and follows just months after an $A450 million accounting scandal at FX New Zealand and FX Australia led to the company launching a High Court civil case against three local executives. New Zealand extended a temporary ban on Fuji Xerox NZ from accepting any new government work in the wake of the scandal, and New Zealand’s Serious Fraud Office is still investigating the case.

Last week, the Australian National Audit Office slammed the Australian Electoral Commission over its $27 million contract with Fuji Xerox Document Management Solutions to scan ballot papers in the 2016 federal election, saying it failed to achieve “value for money” and compromised ballot security.

Earlier this week, it was revealed that the Fuji Xerox Printers business at French’s Forest in Sydney will be integrated into Fuji Xerox Australia at Ryde.

In September 2017, local Fujifilm COO and MD Dave Marshall announced he was suing Fujifilm CEO Takeshi Yanase and chairman Nobuhiko Koshimizu in federal court claiming they dismissed him for being ‘too old’. 59-year-old Marshall said senior Fujifilm figures, including Koshimizu, made ‘ageist’ remarks about him on multiple occasions including at a dinner in Tokyo.

In its statement announcing the deal, Fujifilm said the market environment surrounding Fuji Xerox had grown increasingly severe and that restructuring measures would involve both job cuts and closing or integrating manufacturing bases.

New Fuji Xerox will accelerate business reform not only as an office document business but also as a leading company engaged in a wide range of businesses in fields such as commercial printing centered on inkjet technology as well as various types of industrial printing, and solutions services that improve business process and productivity.

New Fuji Xerox will become the largest document solutions company in the world in revenue size, and by deploying its operations worldwide with a uniform management strategy, New Fuji Xerox will realize further acceleration of business growth and new value creation for customers. In addition to its size, New Fuji Xerox will also have management resources such as high-value brands and the cutting-edge technology and excellent human resources that support those brands, as well as global marketing power and a superior customer base.

Strategy for New Fuji Xerox

– Based on a globally unified marketing strategy, provide products and services that are competitive in the office market, and further accelerate an increase in market share in each region and the acquisition of global accounts

– By optimizing all the value chains at New Fuji Xerox including R&D, manufacturing, procurement, and logistics, realize timely injection of new products into the market and improved cost competitiveness

– By combining the image processing technology that is the Company’s specialty and the document-related AI technology held by New Fuji Xerox, automate work processes that differ for each industry and customer and provide solutions services that realize further improvements in productivity

– By taking the advanced technology held by the Company in areas such as photographs, inkjet, photolithography, and optical, and the technology held by New Fuji Xerox in the document area, then leveraging these technologies to form a combination that competitors do not have, realize innovative product development and expand market domains.

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