Xerox: Fujifilm takes control and cuts 10,000 jobs
Struggling with falling demand for copiers and printers,Xerox has agreed to merge its trading operations with Fuji Xerox, the unite venture that has been in business since 1962, the companies said Wednesday.
As part of the Fujifilm deal, existent Xerox shareholders will receive a cash dividend of $2.5 billion. Once the deal closes, Fujifilm(FUJIF) will control 50.1% of Fuji Xerox, with Xerox(XRX) shareholders proprietary the rest.
Fujifilm announced earlier Wednesday that it plans to lay off 10,000 Fuji Xerox workers.
The job cuts are part of a wider restructuring that the company is assumption in the face of increased competition, Fujifilm said. It expects to reduce annual costs by 50 billion yen ($460 million) in the process.
"The market surrounding ... has grown increasingly severe," the Japanese company said in a statement.
Xerox reported a net loss of $196 million in the quarter completed December, and full year income fell by nearly 5%.
Xerox brand survives
Fuji Xerox sells printers, copiers, production systems and software across the Asia-Pacific region.
The new office will have a combined income of about $18 billion and a presence in more than 180 countries. It will keep the Xerox and Fuji Xerox brands, and have two h.q. in Connecticut and Tokyo.
The merger "will unlock significant growth and productiveness opportunities," Xerox CEO Jeff Jacobson said in a statement.
Jacobson will add as the CEO of the new Fuji Xerox entity, while Fujifilm chairman and CEO Shigetaka Komori will be chairman.
CNNMoney (New Delhi)
First published January 31, 2018: 3:57 AM ET
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