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Xerox is currently grappling with a financial crisis that could jeopardize its future. As of September 30, 2025, the company reported $479 million in cash reserves, but with tens of thousands of employees on payroll, this amount only covers about 90 days of operations. The situation is even more dire when considering the company’s negative free cash flow for the past three quarters, totaling a $299 million cash burn.
Despite some cash coming in, Xerox’s declining free cash flow indicates that the company is operating at a loss, spending more than it generates from core operations. This poses a serious threat as the company cannot rely on its cash reserves for long. The upcoming debt payments, including two payments around $100 million each, could further strain Xerox’s financial health, possibly pushing it to the brink of bankruptcy.
Moreover, while the company is facing pressure to cut costs, layoffs are unlikely to fix the deeper financial problems. The company’s overhead and interest expenses, around $320 million annually, add significant weight to its financial burden. Without new sources of revenue or the ability to borrow, Xerox may be running out of options. In short, Xerox’s financial future is in jeopardy, and without drastic measures, the company could be at the end of its runway. The next few months are crucial as the company faces mounting debt obligations and an unsustainable cash burn rate.
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