XEROX AFFILIATE FLEXTRONICS TO LAYOFF 250 U.S. EMPLOYEES

[Anonymous]

XEROX AFFILIATE FLEXTRONICS TO LAYOFF 250 U.S. EMPLOYEES 

Flextronics Americas LLC plans to lay off 250 employees in Massachusetts by the end of August, according to notices filed with the state’s labor office.

The company is the US subsidiary of a multibillion-dollar Singaporean electronics maker, Flextronics International. The affected employees work at more than 20 Verizon Wireless Communications retail stores, including in Boston, Framingham, and Springfield.

Michael Murphy, a Verizon Wireless spokesman in New England, said his company is ending its 10-year relationship with Flextronics, whose employees helped customers with technical support services and sales at Verizon owned-and-operated stores.

“We are now taking the technical support function in house,’’ Murphy said in a statement. “Our goal is to simplify and improve the customer experience in our company-owned stores by staffing in house with employees whom we hire and train.’’

Renee Brotherton, a spokeswoman for Flextronics, said the decision was not a reflection on the company’s performance, but a change in Verizon’s business strategy. The change “has caused Flextronics to make the difficult decision to initiate a reduction in force,’’ Brotherton said in a statement.

Those who are laid off will be able to apply for other jobs at Flextronics and Verizon, she said, and will be eligible for severance packages. “We are doing everything possible to be supportive of our affected colleagues at this time,’’ Brotherton said.

Flextronics, a Fortune 500 company with US operations in Charlotte, N.C., designs and develops electronic products for some of the biggest brands, including Microsoft Corp. and Hewlett-Packard.

 

http://www.glgroup.com/News/What-is-Xerox-Becoming–54474.html
What is Xerox Becoming?
Historically, Xerox was a (the) copier company: copiers were the products, the business model and the overall corporate identity. As the world went digital, so did Xerox, rebranding themselves as "the document company." Now, Xerox is moving beyond the document into the broader business of technology-led services. This re-rebranding will certainly influence their offerings and approach to market and present certain challenges for understanding the Xerox business model and future prospects.
Analysis

Long ago, Xerox started as the copier company, then became the document company. But the document company is moving on – to become what?

In a recent WSJ interview, Xerox CEO Ursula Burns was asked whether hardware is still “part of the equation.” That’s like asking Ford whether they will continue to make cars. Ms. Burns answered in the affirmative, at least for the color business (!).

This exchange raises a number of questions:
1) How is the hardware business evolving?
2) Where are the future business opportunities for Xerox?
3) How will these changes affect the valuation model and outlook for Xerox?

To point 1: the imaging business is fragmented. Nobody wants to sell low- (or no-) margin hardware without compensating with lots of high-margin consumables. The best place to be is high volume and color, and this is clearly where Xerox is headed. This space will be profitable for a long time to come.

To point 2: during a recent briefing, several executives answered this with nearly identical responses. One executive stated: “we are a technology-led services business.” The opening presentation made a similar statement: Xerox is a “services-led, technology-driven business.”

Xerox is working to maintain a balance between the legacy and new businesses. The briefing emphasized that Xerox is now moving beyond the document. The acquisition of ACS is only one very visible expression of that strategy. Taken altogether, the business approaches and offerings indicate that Xerox is already well beyond the document business.

To point 3:as always, it depends on execution. The logic of expanding the business into the adjacent space is perfectly fine. It is easy to underestimate Xerox (and other "mainstream" printer/MFP manufacturers), as their legacy is far removed from the world of IT managed services and business process optimization. But they are farther along than many outsiders realize and have built a powerful and IT-savvy portfolio.

There are challenges. The sales force is still heavy with "tonerheads," but that is being addressed through recruitment and training activities. The company is working to leverage its resources across geographies and across sales channels to address as many potential customers as possible. The hardware will not go away any time soon, but the addition of services in the same space promises to be a valuable impetus to move the business forward

[Author]

June 29, 2011 at 9:57 AM