Thread regarding Xerox Corp. layoffs

Xerox HP takeover effect on employees

I am ex Xerox, but not here to bash a company I had many good times with, I am just asking why (at least some) Xerox employees (on LI) seem to think buying HP is a good thing?
If, and it is a big if, the deal happens, it will result in the following, fairly obvious results:

  1. More job losses, although this likely to happen anyway.
  2. A company with Market cap of around 40 billion and debt upwards of 30 billion, in a declining imaging market.

Xerox nearly sank under debt 20 years ago, when the market was more favourable, how will they manage this level of debt in the current (and future) declining market.
Others may have more insight but to me it makes no sense, unless you a a shareholder, looking for a quick buck.

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Post ID: @OP+12VvUbor

9 replies (most recent on top)

It will prob be a disaster (for staff and customers) if it happens,Its a forced marriage,HP will hinder everything , xerox will not innovate the pc/laptop business, all we can hope for is Jonny V leaves and we will be run by HP managers.

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Post ID: @1ecd+12VvUbor

This deal only benefits Carl Icahn and the shareholders. No one else. That's all you need to know. Any employee who thinks this is a good idea is extremely naive.

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Post ID: @1myv+12VvUbor

It's amazing how a junk bond rated outfit all of a sudden can land several billions at investment grade rating. Carl must have those banks by the short hairs. It's a shame that it is to be invested in a pump and dump scheme, instead of gainful, innovative, enriching, employment-promoting projects for all involved.

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Post ID: @1pkq+12VvUbor

Xerox is desperate.
HP fired Johnny V.
Xerox is notoriously late paying everybody
I want to know how in hell anyone would give Xerox financing???
Print is a dying business

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Post ID: @pid+12VvUbor

I would say people think it makes sense based solely on merging eliminates a competitor. So basically you eliminate HP printer division, Xerox customers double and can still likely meet that without increasing your Xerox workforce.

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Post ID: @skf+12VvUbor

It only makes sense to Carl Icahn. HP is moving away from printing and putting their efforts into 3D, their computers and industrial equipment now. They also have some great products in the works that I can't say anything about (yes I work at HP in the research division). The after market ink cartridge business is dying fast and HP does not want anything to do with another failing printer company.

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Post ID: @lhg+12VvUbor

Re " I'm just an engineer".

Remember that HP was formed by two guys who were "just engineers".

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Post ID: @cgb+12VvUbor

This deal makes Carl Icahn and his legion even richer, that's all that matters. Business sense, financials, market conditions, and especially employees are irrelevant.

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Post ID: @tnk+12VvUbor

I think some sort of merger makes sense. We are in a declining market, and often companies in declining markets consolidate their resources to stay around a little longer. Certainly the way it is normally done focuses on retaining value for shareholders and executives, and not the employee.

The way they are doing this though doesn't make sense to me, but I'm just an engineer so my business knowledge is pretty much zero. How does it make sense to take on 24 billion in debt to buy a company that itself is also declining? What is the payback period? How many people in Xerox and in HP will lose their jobs? is this the best thing for our customers, or a short term money grab for a small number of people?

Collaboration makes sense in some way. Getting our engines from HP instead of (or in addition to for the short term) Fuji Xerox allows us to still have a market presence. But for how long?

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Post ID: @bmf+12VvUbor

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