Are Hundreds of Layoffs by Xerox Coming to Europe?

[Anonymous]

Are Hundreds of Layoffs by Xerox Coming to Europe?

Xerox defends ACS compatibility but admits to restructure

I blogged yesterday about news that Xerox is going to restructure its services business in Europe. I was told by a source that this will involve hundreds of redundancies.

I also asked the question: Do hardware firms and services suppliers have incompatible DNA?
I have had an interesting response on the blog from a Ken Ericson. He is head of communications at Xerox based in the US. Who says social media will never take-off.

Ericson admits there is some restructuring but outlines why he thinks ACS and Xerox are compatible.

This is what he said: "Speaking on behalf of Xerox, I wanted to clear up some of the points in your article: I’d have to disagree with your premise of "incompatible DNA." Our differentiated mix gives Xerox strength to help clients simplify business challenges. Here’s an example: a few weeks ago we demonstrated how Xerox innovation is being applied to services from ACS in industries like transportation and healthcare. These are new ways we’re helping our clients and strengthening our annuity-based business model. There’s no question many companies are facing headwinds in Europe, but we’re managing it with focus, discipline and sound investments to tap into high-growth areas, most recently acquiring customer care providers WDS and Unamic. Our restructuring, the details of which will be announced in November, will make us even more efficient and responsive to the needs of our customers and changing business."

http://www.computerweekly.com/news/2240169873/Xerox-services-business-in-Europe-retrenches-in-face-of-headwinds
Xerox services business in Europe retrenches in face of headwinds
Xerox is restructuring its European services business which will see senior staff and sales people let go as the company shies away from growth in preference for protecting what it has.

As exclusively revealed by ComputerWeekly the company will announce restructuring plans this month. Computer Weekly understands the European services arm of Xerox is letting sales and pre sales teams go as well as the leadership in a bid to save $18m to contribute to an overall Xerox target of reducing costs by hundreds of millions of dollars.

A source that knows the situation said that Xerox is not going for growth in its European services business but wants to protect the business it already has. “Xerox is getting rid of sales and pre sales so it will not be able to grow. ”Xerox’s European services business includes IT outsourcing, financial services BPO and HR outsourcing.

Ken Ericson, head of communications at Xerox said: “There’s no question many companies are facing headwinds in Europe, but we’re managing it with focus, discipline and sound investments to tap into high-growth areas, most recently acquiring customer care providers WDS and Unamic. Our restructuring, the details of which will be announced in November, will make us even more efficient and responsive to the needs of our customers and changing business.”

Xerox acquired US IT and business process services giant Affiliated Computer Services (ACS) for billions of dollars in 2009 to grow its services business. The purchase gave Xerox a services footprint in over 100 countries from 500 locations.

Speaking at the time Xerox CEO Ursula Burns said the deal was "a game-changer ".

"By combining Xerox’s strengths in document technology with ACS’s expertise in managing and automating work processes, we’re creating a new class of solution provider," she said. Xerox wanted to use its brand to grow ACS’s business outside the US with a strong focus on Europe.

[Author]

November 1, 2012 at 9:32 AM