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Xerox slashes workforce and battles bankruptcy rumours

Tuesday, 06 March 2001
By Print 21 Online Article
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The sale will see the profitable Australian subsidiary of the company become completely Japanese owned if majority owner Fuji exercises its option to buy.

Xerox is in a fire-sale predicament as it staggers from a fourth quarter loss of US$198 million. Following a series of disastrous reports last year, the ongoing red ink has seen the share market savage its stock price. The company is expecting to lose more money in the first quarter of this year, although it is predicting a turnaround in the future.

In a bid to cut US$1 billion from its costs, the flagship US company slashed its workforce by 2000 last year with reports indicating it will follow up by cutting another 4,000 to 11,000 jobs this year. (Last year Xerox worldwide had a workforce of over 90,000). The sale of its 25 per cent of Fuji Xerox, estimated to be worth US$1.5 billion, is part of a plan to raise US$4 billion in asset sales.

Xerox’s decline comes as a result of increased competition, a series of questionable management and operational decisions rather than as a result of any technology deficiency, according to industry analysts.

The company’s strategy is turning towards the consumer market with the launch of its new range of Blue Dog desktop printers, designed in conjunction with Sharp.

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