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Xerox plans job cuts, restructuring

Xerox Corp. today said it plans to cut jobs, sell assets and reduce costs as part of a companywide restructuring.
The restructuring was announced at 6 a.m. today along with the document company’s (NYSE: XRX) third-quarter earnings report. Xerox lost 20 cents a share and third-quarter revenue was $4.5 billion, 4 percent lower than the 1999.
The announcement had little impact on Xerox stock which was up 13 cents this morning to $9.25. The stock rose as high as $10 in pre-opening trading.
The company outlined a turnaround program that includes cutting $1 billion in costs, and selling assets expected to raise $2 billion to $4 billion.
Xerox revealed it is in discussions to sell a range of assets that includes: the company’s China operations, a portion of its ownership in Fuji Xerox, Xerox Engineering Systems and its interest in spin-off companies such as ContentGuard and Inxight.
Some of those areas had been the subject of rumors the past couple weeks.
Xerox also is talking with a number of firms about making a significant equity investment in its inkjet business and is exploring a joint venture with non-competitive partners for its Palo Alto Research Center. The company also plans to outsource or sell certain manufacturing operations. Over time, the company plans to exit the equipment financing business.
“It is clear that just fixing our operational issues, although critical, is not sufficient. We must fundamentally resize our cost base, cut our investment levels and significantly improve our balance sheet with asset sales and alternative means of providing customer financing,” said Paul Allaire, Xerox chairman and CEO.
Xerox officials did not indicate how many jobs will be cut or where the cuts will occur. The company aims to reduce more than $200 million in manufacturing and supply chain costs, “substantially increasing the number of positions removed from the company.”
“The combination of all of these actions—the previously announced dividend reduction, the focus on operational cash, the asset dispositions and financing options will significantly strengthen the balance sheet, and reduce our debt level,” said Allaire. “This will sharpen our competitive edge, deliver the superior products and services that our customers require, and generate the value that our credit providers and shareholders require.”
This story will be updated later today.

Xerox plans job cuts, restructuring

Xerox Corp. today said it plans to cut jobs, sell assets and reduce costs as part of a companywide restructuring. Xerox outlined a turnaround program that includes cutting $1 billion in costs, and selling assets expected to raise $2 billion to $4 billion. The announcement had little impact on Xerox stock which was up 13 cents this morning to $9.25. Xerox revealed it is in discussions to sell a range of assets that includes: the company’s China operations, a portion of its ownership in Fuji Xerox, Xerox Engineering Systems and its interest in spin-off companies such as ContentGuard and Inxight.

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