Ordinarily, as a B2B publication, we hesitate to report on rumor, speculation or innuendo. But in the case of Xerox, it is quite clear that something is afoot with the organization, which is due to celebrate its 113th anniversary this year.
The rumblings are becoming louder and louder. Officially, Xerox has no comment on its plans, but individuals, some speaking on the condition that they not be identified, have given strong indications that some type of action will happen during the first quarter of the 2019 calendar year.
That Xerox is looking for an outlet that will bolster shareholder value and enhance its chances as an ongoing business concern is not a secret. The shareholder battle waged by Carl Icahn and Darwin Deason helped put the kibosh on the deal that would have married Xerox to Fuji Xerox, resulting in the ouster of CEO Jeff Jacobsen. The two sides are still engaged in a legal battle, and while Fujifilm is still interested in returning to the bargaining table, there doesn’t seem to be any movement on this front.
Xerox is clearly reconciling its headcount as the saga unfolds. In its third quarter financial report, which ended Sept. 30, the company announced that 900 positions had been sliced from its global workforce. On Dec. 13, the Rochester Democrat and Chronicle reported that an untold number of managerial positions were being eliminated.
Ray Stasieczko
Analysts and dealers are also speculating as to what Xerox’s next move will be. One of ENX Magazine’s contributors, Ray Stasieczko, posted a video on p4photel.com where he recounted his belief, originally voiced at the ReMax Summit in China, that HP is the ideal suitor to acquire Xerox. He noted the organizations have many synergies—they’re both in the production print realm, HP acquired Samsung (which manufactures Xerox’s A4 models) and lastly, HP would reap distribution through Xerox’s Global Imaging.
One dealer, echoing sentiments he has heard from fellow dealers, believes that Global Imaging Systems—a Xerox Company of indirect sales branches that offers multiple manufacturer products—will be folded into Xerox on or around the first of the year and become a Xerox direct entity. Should this happen, there would be a domino effect surrounding manufacturers whose wares are distributed through GIS, namely Konica Minolta and Sharp. In the process, GIS would lose the entrepreneurship that helped make it a profitable business. In that regard, such a move might seem short-sighted, absent more details surrounding such a move.
Still, others have asked the question, “If not Fujifilm, then who?” Icahn and Deason didn’t amass the multitude of zeroes in their coffers without deftly maximizing their ROI. Apparently, $6.1 billion fell woefully shy in their estimate, but as more time passes and Xerox continues to make staff justifications, it seems apparent that some sort of movement is afoot. Be it Fujifilm, HP or the absorption of GIS, Xerox definitely appears to be arranging its chess pieces. One thing seems certain. A major overhaul of some sort is in the cards, and it’s not a question of if, but a question of when.
