According to The Wall Street Journal (WSJ) report, Xerox is to split, dividing it into two companies – separate services and hardware businesses. The WSJ report says, “Xerox will divide into two publicly traded companies: one containing its office machines and another housing its services operations, according to people familiar with the matter . . . and give several board seats to activist investor Carl Icahn, reversing an effort by the century-old company to marry business services with its copiers and printers. As part of the move, billionaire Carl Icahn will get three seats on the services company’s board, the people said. Icahn in November disclosed a stake in Xerox and said he would seek talks with the company about its future. With an 8.1% stake in the company, Icahn’s hedge fund is now the second-largest shareholder after index giant Vanguard Group.”
In the past years, Xerox has seen an upsurge in its services business, despite this the company hasn’t been able to counter the slide in its traditional hardware operation. For decades, Xerox built its business by inventing new machines – such as the photocopier and the laser printer, and pushing companies to buy more office machines supplied with pricey ink and toner. Its success funded its famed Palo Alto Research Center, whose work included Ethernet Technology and an early prototype computer with a graphical user interface and mouse. But it endured bruising battles with UNS and overseas rivals that triggered layoffs and restructuring. In 2000, slashed its dividend in the face of huge losses and heavy debt. The company, which is now based in Norwalk and employs 140,800 people around the globe, had a bruising year in 2015,says the WSJ report.
