10,000 Jobs Slashed as Fujifilm Takes Over Xerox in $6.1B Deal. Xerox Cedes Their Legendary Independence in Tech Sector.
Japan’s Fujifilm Holdings will take over Xerox Corp in the $6.1-billion deal, merging the U.S. company into their existing joint venture which will help them scale & cut costs as there is declining demand for office printing.
The breaking news today on this deal comes as Xerox has been under pressure to find new areas of growth as it struggles to reinvent its core, and legendary business amid that declining demand for office printing.
Fujifilm is also moving to streamline its copier business with a bigger focus on solutions in the document services sector.
R&D, procurement and other operations will consolidate, and will allow Fuji Xerox to deliver a minimum of ~$1.7-billion in total cost savings by 2022, both companies stated.
-- Some Quick Facts:
-- Fujifilm now owns 75 per cent of Fuji Xerox.
-- The joint venture goes back more than 50 years
-- Both companies state that Fuji Xerox will buy back that stake from Fujifilm for ~$6.1-billion, using debt from the bank sector
-- Fujifilm will use those proceeds to purchase 50.1 % of new Xerox shares; This to be completed by August 2018.
-- The company will keep the Fuji Xerox name and become a subsidiary of Fujifilm, with 2 headquarters in the USA and Japan.
-- It is listed in New York and will be led by Xerox CEO Jeff Jacobson, while Fujifilm CEO Shigetaka Komori will move forward as chairman.
-- The joint venture accounts for nearly half of Fujifilm’s sales and operating profit.
Both companies have struggled with slow sales of photocopy products, as businesses increasingly go paperless.
“This has been a speedy decision, but I believe it’s a creative one,”
-- Fujifilm CEO Komori told reporters at a briefing.
“The new structure will leverage the strengths of our three companies.”
In the restructuring plan, Fujifilm stated it is cutting 10,000 jobs at Fuji Xerox, totalling upwards of 1/5th of its workforce at the joint venture, in the Asia Pacific region.
Reports have stated that:
Xerox had been targeted by activist investor Carl Icahn along with shareholder Darwin Deason, who joined forces last week pushing Xerox to explore strategic options, oust its “old guard,” including its CEO, and negotiate better terms for its decades-long deal with Fujifilm. Icahn is Xerox’s biggest shareholder, with a 9.72 per cent stake.
“This transaction...offers substantial upside for shareholders of the combined companies, including current shareholders of Xerox and Fujifilm Holdings, who will own shares in a more competitive company that has enhanced opportunities for long-term growth and margin expansion,”
-- Jacobson stated in a video message that was pre-recorded .
This takeover deal comes less than 1 year after Fujifilm admitted improper accounting standards at Fuji Xerox, but Komori said that Xerox’s strong governance standards could be beneficial to the new company.
Fujifilm shares were down sharply 8.3 % on Wednesday in advance of its announcement of job cuts but after the breaking reports about the Xerox deal.
Xerox shares ended down 0.5 per cent the day before the announcement on Tuesday.
The markets have also been down notably this week in all sectors, so keep that in mind.
Sources
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Japan’s Fujifilm Holdings will take over Xerox Corp in the $6.1-billion deal, merging the U.S. company into their existing joint venture which will help them scale & cut costs as there is declining demand for office printing.
The breaking news today on this deal comes as Xerox has been under pressure to find new areas of growth as it struggles to reinvent its core, and legendary business amid that declining demand for office printing.
Fujifilm is also moving to streamline its copier business with a bigger focus on solutions in the document services sector.
R&D, procurement and other operations will consolidate, and will allow Fuji Xerox to deliver a minimum of ~$1.7-billion in total cost savings by 2022, both companies stated.
-- Some Quick Facts:
-- Fujifilm now owns 75 per cent of Fuji Xerox.
-- The joint venture goes back more than 50 years
-- Both companies state that Fuji Xerox will buy back that stake from Fujifilm for ~$6.1-billion, using debt from the bank sector
-- Fujifilm will use those proceeds to purchase 50.1 % of new Xerox shares; This to be completed by August 2018.
-- The company will keep the Fuji Xerox name and become a subsidiary of Fujifilm, with 2 headquarters in the USA and Japan.
-- It is listed in New York and will be led by Xerox CEO Jeff Jacobson, while Fujifilm CEO Shigetaka Komori will move forward as chairman.
-- The joint venture accounts for nearly half of Fujifilm’s sales and operating profit.
Both companies have struggled with slow sales of photocopy products, as businesses increasingly go paperless.
“This has been a speedy decision, but I believe it’s a creative one,”
-- Fujifilm CEO Komori told reporters at a briefing.
“The new structure will leverage the strengths of our three companies.”
In the restructuring plan, Fujifilm stated it is cutting 10,000 jobs at Fuji Xerox, totalling upwards of 1/5th of its workforce at the joint venture, in the Asia Pacific region.
Reports have stated that:
Xerox had been targeted by activist investor Carl Icahn along with shareholder Darwin Deason, who joined forces last week pushing Xerox to explore strategic options, oust its “old guard,” including its CEO, and negotiate better terms for its decades-long deal with Fujifilm. Icahn is Xerox’s biggest shareholder, with a 9.72 per cent stake.
“This transaction...offers substantial upside for shareholders of the combined companies, including current shareholders of Xerox and Fujifilm Holdings, who will own shares in a more competitive company that has enhanced opportunities for long-term growth and margin expansion,”
-- Jacobson stated in a video message that was pre-recorded .
This takeover deal comes less than 1 year after Fujifilm admitted improper accounting standards at Fuji Xerox, but Komori said that Xerox’s strong governance standards could be beneficial to the new company.
Fujifilm shares were down sharply 8.3 % on Wednesday in advance of its announcement of job cuts but after the breaking reports about the Xerox deal.
Xerox shares ended down 0.5 per cent the day before the announcement on Tuesday.
The markets have also been down notably this week in all sectors, so keep that in mind.
Sources
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
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Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
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Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
The situation is very pathetic. Now is the time for everyone to embrace digital technology. Thanks for sharing
Everyone keeps cutting so many jobs. Just wait till they realize if no one is working they can't afforded what ever junk they want to sell...
You would think they start to focus more on the work from home style of employee hose kind of people do tend to need good copy/printer. Even if they are trying to be paperless.
let's just wait and see the results