Xerox is in a precarious position after severing relations with Fujifilm. Fuji supplies approximately 9-% of Xerox branded hardware. Xerox reduced itself to a brand name who no longer manufactures it’s own products. The few products Xerox does manufacturer are dinosaurs without a replacement in the works. Without Fuji, Xerox MUST find another supplier. Xerox essentially bet the farm when the Fuji relationship was severed. Xerox has all eggs in the HP takeover basket. HP needs nothing Xerox has to offer. Xerox “services” offerings are smoke and mirrors managed by a poorly staffed and led delivery organization. HP has a robust production color technology offering and a broad SMB portfolio. HP would be best served independent of Xerox. Will an HP takeover fail be the nail in the coffin for Xerox?
17 replies (most recent on top)
Xerox is dead in the water without HP !
90% supplied by Fuji
I think it's more than 9%, or will be more than 9% shortly. With the souring or relationships with Fuji Xerox, I expect after the current crop of products is end-of-life, we'll only be getting engines from HP other than production, which in terms of units sold, is much less.
We've made our bed with HP and are in it for the long haul, one way of another: supplier, purchaser, or purchasee.
Good luck selling the patents. When I was there I had several patents being infringed on and they couldn't figure out what to do about it. And that was before all of the patent attorneys left. The tech industry is moving towards open sharing not patent holding. And you can ask Kodak how a failing company does at selling patents. Everyone just waits for the "everything 75% off sale."
Before Icahn raised his ugly head, the average age of a Xerox employee in the US was 53 as of the start of 2017 when Conduent was sold. The average of tech ‘powerhouses’ is about 35. It was a major concern within the C-Suite at that time. It was also clear that the retention 'tool' that was working was RIGP. HR was trying to figure out how to attract a 'new' younger workforce with a very small budget; but even those efforts went out the door when Johnny V took over. Today it's all about cutting headcount as no time effort nor money is going into compensation, retirement (RIGP and 401K), training development, etc. Without investing in people, products (R&D), or partnerships (FujiXerox), Xerox is just a brand and without a product partner (HP), it's over except.
If the HP deal falls through I expect to see a yard sale sign put out. Patents, supplies, parts, finance unit, etc.
without HP xerox will be in trouble, I imagine they will have to sell it off cheap
Younger workers also want a job where they can learn and gain experience with new tools or processes. None of that is happening at Xerox. Our group lost every intern we brought in because they saw how ancient our systems or processes were and that there was no outlet for their skill set. Because of that they would politely decline the offer of employment at the end of the internship.
25-30 year olds don’t want to keep a ship afloat, they want a dependable income. A company rapidly going down the toilet will not be chosen by the brightest of our youth.
In spite of the dreadful management, Icahn and his ilk ,Xerox employees have been incredibly loyal. There are still lots of employees in the 25-30 year range that do care and hope to keep the ship afloat.Not
everyone has thrown in the towel.
Will it fail? It already did.
A bunch of outsourced contractors are going to come up with new products and technology? They sure did a fantastic job on the 737 MAX.
“Workers keep pushing forward” - That’s a bold face lie meant to divert the truth. Truth is Workers are disgruntled, demotivated and buying time as the plan their exit. Workers have no faith in the company, products, services, or leadership. Too much talent departed in the past 2 years, and the exodus continues.
FX+FUJI+XRX would have been the real-deal. And, no, Japanese mgt and style would never, ever pull some of this recent stuff. The FX XC Fuji deal was a cashless merger. Think about that for a minute vs $25B++ leveraged buyout? Fuji and xerox worked side-by-side for 50+ yrs. The mafia came in and put their made men into slots to benefit as the ship is steered wrong.
Even if HP merger, the debt burden would be horrific vs cashless merger with FX
Xerox will get exactly what it deserves. Karma is real!!!!!
If anything Xerox is resilient.Company keeps taking hits from all sides but it workers seem to keep pushing forward regardless the lack of a coherent long term strategy or future product development.
Im curious if the merger with FX had of went through would that actually have been good for Xerox?
Or were we going to go down the HCL path anyway?
I refute some of your content but the theme is accurate: XRX needs a lifeboat.