Is Xerox Still In Business? Yes, Xerox Holdings Corporation is still in business. It is an American corporation that sells print and digital document products and services worldwide. Despite facing challenges, Xerox has diversified its business over the years. It has expanded into areas such as laser printers and financial services. So, while Xerox has evolved, it continues to operate globally, providing document solutions and services.
Let’s dive in!
Xerox: A Brief History
In 1906, Xerox was founded as The Haloid Photographic Company in Rochester, New York. Initially, the company manufactured photographic paper and equipment. However, it was the invention of xerography that would change the course of its history.
The Xerographic Revolution
In 1938, physicist Chester Carlson independently developed a process for printing images using an electrically charged photoconductor-coated metal plate and dry powder “toner. It took over two decades of refinement before the first automated copying machine was commercialized.
Joseph C. Wilson, often credited as the “founder of Xerox,” recognized the potential of Carlson’s invention and signed an agreement to develop it as a commercial product.
Xerox’s Dominance and Challenges
For years, Xerox dominated the photocopier market. Its iconic machines became ubiquitous in offices worldwide. However, as technology evolved, Xerox faced stiff competition and needed to adapt. The digital revolution posed both opportunities and threats.
The Fujifilm Acquisition
In January 2018, faced with continued decline within the technology industry, Xerox announced its acquisition by Fujifilm in a deal valued at more than $6 billion. Fujifilm acquired a 51% stake in Xerox, forming the joint venture known as Fuji Xerox. This move aimed to help Xerox recover after a period of struggle.
Why Did Xerox Face Challenges and How Did It Impact Their Business?
In the late 1900s, Xerox faced problems because it didn’t come up with new ideas. By 2018, Fujifilm bought 51% of Xerox to help it recover.
This story about Xerox teaches us how vital it is for businesses to be innovative. If they don’t come up with new ideas, they can fall behind.
As leaders, it’s crucial to focus on innovation and invest in ways to encourage new ideas. Not just researching to get more ideas but also using tools to manage innovation for long-term success.
Innovation is super important for a company to grow and succeed in today’s fast business world.
Xerox once led the photocopy industry by inventing xerography, a photocopying method. They used a special metal plate and dry powder to print pictures.
In 1938, Chester Carlson invented xerography, boosting Xerox’s sales. By 1961, they made a profit of $60 million.
But despite early success, Xerox failed for a few reasons:
- Narrow and Impulsive Decisions: In 1981, Xerox introduced the Xerox Star, a $16,000 machine. It failed because competitors like IBM had a similar product for only $1,600. Xerox also went into insurance and financial services, unrelated to its core business.
- Not Evolving with Time: As personal computers became popular, the need for copiers decreased. Xerox didn’t see the potential of personal computers and continued to focus on copiers. Meanwhile, competitors like Apple invested in personal computing and changed the industry.
- Underestimating Employee Innovation: Xerox made a deal with EDS in 1994, transferring efficient employees. This led to a clash of cultures, and Xerox faced losses and lawsuits.
- Declined Value in the Market: In 2010, Xerox tried to change its image, but it struggled to attract customers. In 2014 and 2016, Xerox faced accusations of fraud for mishandling Medicaid programs.
How Has The Pandemic Affected Xerox Business?
The COVID-19 pandemic has significantly impacted Xerox’s business. Let’s explore how:
Financial Performance:
In the fourth quarter of 2022, Xerox reported a loss of $675 million in net income. However, its adjusted earnings per share of 34 cents were slightly above Wall Street estimates.
During the third quarter of 2021, Xerox saw revenues of $1.76 billion, which remained essentially flat compared to the previous year but fell slightly below analysts’ expectations.
Workplace Adaptations:
Xerox conducted the Future of Work Survey to understand how IT decision-makers were adjusting their resources and technology during the pandemic. The survey involved 600 IT leaders from various industries, including business services, retail, healthcare, finance, and travel. These leaders had to navigate a highly fluid environment and make decisions amidst uncertainty.
Restructuring and Workforce Reductions:
Under the existing “Project Own It” restructuring plan, Xerox cut 2,800 jobs in 2022, reducing its workforce to 20,500. Additionally, 180 jobs were cut in the first nine months of 2023, with the average severance for affected employees exceeding $70,000.0
Adapting to Remote Work:
Like many companies, Xerox had to adjust to remote working conditions. It evaluated lessons learned during the transition and made necessary changes to its resources and technology.
Xerox: Financial Performance
Xerox shared its financial performance for the last year (2023) along with plans for 2024.
In the last quarter of 2023:
- Revenue was $1.77 billion, down 9.1% from the previous year.
- They had a net loss of $58 million, which includes costs related to a workforce reduction.
- Adjusted net income was $56 million.
- Operating cash flow was $389 million, and free cash flow was $379 million.
For the full year 2023:
- Revenue was $6.89 billion, down 3.1% from the previous year.
- They reported a net income of $1 million.
- Adjusted net income was $287 million.
- Operating cash flow was $686 million, and free cash flow was $649 million.
The CEO, Steve Bandrowczak, mentioned that steps taken to simplify the business affected revenue. But it led to improved operating margins. They are focused on strengthening their core Print business and capturing opportunities in Digital and IT Services for the year 2024.
In the last quarter of 2023, Xerox faced challenges with a decrease in revenue, but they managed to increase operating cash flow and free cash flow compared to the previous year. For the entire year, they experienced a decline in revenue but reported positive net income and increased operating and free cash flow.
These results and plans were shared on January 25, 2024, in a statement by Xerox Holdings Corporation.
Xerox Improvements: What’s Changing and Why?
Xerox is changing how it works to make things better. They’re doing three main things:
Making their regular printer business simpler and better for people who buy office stuff.
Setting up a new team to handle all the paperwork and stuff that happens behind the scenes so they can do it better and cheaper.
Focusing more on digital services and other new things to make more money.
They’ve also changed who’s in charge of what. John Bruno will now run a bunch of important stuff, Louie Pastor will take care of making these changes happen, and Flor Colon will handle legal things.
Some people are leaving the company, and they’re planning to reduce the number of workers by 15% this quarter. They’ll help the people who are affected by this change find new jobs.
What’s Xerox’s Future?
Xerox mentions “forward-looking statements,” which are like predictions about what might happen. They talk about factors that could affect their plans, like global economic conditions, competition, and the ongoing Russia-Ukraine conflict. Xerox wants to stay competitive by adapting to changes like the shift to hybrid work and new customer preferences.
They also highlight potential risks, like cybersecurity threats and changes in laws. Xerox is committed to being transparent and mentions that these predictions are based on what they know now, but things might change. They plan to update the information if needed but only as required by law.
If you want to know more about Xerox and its approach to diversity and inclusion, you can visit www.xerox.com.
What Are Some Of Xerox Competitors?
Here are some companies that compete with Xerox:
Canon:
Based in Tokyo, Japan, since 1937, Canon is known for good machines at good prices for all kinds of businesses.
Ricoh:
Also from Tokyo, Japan, since 1936, Ricoh has made commercial and industrial printers. They focus on innovation to help companies work better.
Konica Minolta:
In Tokyo, Japan, since 2003, Konica Minolta has had printers that won awards. They aim to make your business’s printing and workflow better.
Share:
Operating since 1912 from Osaka Prefecture, Japan, Sharp is a leader in the print industry. They work to bring high-quality products that are easy to use and help businesses be more productive.
HP (Hewlett Packard):
Based in Palo Alto, California, since 1939, HP’s products work well with many organizations. They are known for secure and cost-friendly printers and copiers, especially for businesses not doing lots of printing.
Lexmark:
Coming from Lexington, Kentucky, since 1991, Lexmark has products for all business sizes. They aim for smart solutions, caring about sustainability and getting the best results for businesses.
Kyocera:
Since 1959 in Kyoto, Japan, Kyocera has been innovating with different products that help businesses be more efficient and productive. They also care about the environment and offer reliable products.
All these companies are trying to make good products and help businesses do their best.
The Bottom Line
Yes, Xerox is still in business. It is helping people print and use digital stuff all around the world. Xerox is still a big company even though other companies are doing similar things. They’ve changed over time and now do more than just printers, like making laser printers and helping with money stuff. Even though they face some problems, Xerox changes to fit the times and is in many countries worldwide. They moved from NYSE to Nasdaq in 2021. Xerox keeps going strong, providing helpful technology for businesses everywhere.
