Xerox Corp (NYSE:XRX) has announced that it will lay off 47 employees in Cerritos, Los Angeles. Effective March 10, these Xerox layoffs in March 2018 will lead to the permanent elimination of about 47 employees. Fujifilm Holdings Corporation, a Japanese company, announced in January that it would acquire Xerox for $6.1 billion, with the layoffs coming as part of the restructuring occurring as a result.
Fujifilm now owns 75% of Fuji Xerox Co., Ltd., the joint venture between Fujifilm and Xerox Corp. that dates back to 1962. This acquisition comes as both the companies are facing challenges due to slow sales coming from the increase in paperless business. The two companies said that this deal would help to save at least $1.7 billion by 2022.
Job Cuts and Cost-Cutting at Fuji Xerox
Jeff Jacobson, Xerox’s CEO, said that the 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.”
Under this deal, Fuji Xerox will work as a subsidiary of Fujifilm and will have headquarters in both the United States and Japan. Jacobson will lead the company and Shigetaka Komori, Fujifilm’s CEO, will serve chairman. This deal is expected to be completed in July or August.
The 47 layoffs in Cerritos, Los Angeles are only a small portion of those losing their jobs, as Fujifilm announced an intention cut 10,000 jobs globally. “This has been a speedy decision, but I believe it’s a creative one,” Komori said. “The new structure will leverage the strengths of our three companies.”
Xerox is facing tough competition from lower-cost Japanese competitors like Canon Inc. (NYSE:CAJ) and Ricoh Company, Ltd. (OTCQB:RICOY), as well as dealing with the increased preference for sending and sharing documents electronically. Xerox layoffs in 2018 may continue as a result.
“WARN Report,” State of California Employment Development Department, last accessed February 10, 2018.
“Xerox Era Ends With $6.1B Fujifilm Takeover,” CFO, January 31, 2018.
“Fujifilm to take over Xerox in $6.1-billion deal, slash 10,000 jobs,” The Globe and Mail, February 1, 2018.
“Fujifilm says to cut 10,000 jobs at joint venture with Xerox,” Reuters, January 31, 2018.