Xerox splits up

Xerox has split into two publicly traded companies. One company is dedicated to document technology and the other to business process outsourcing (BPO). The company names and leaders are subject of further announcements. All reorganisation will be completed by end 2016. According to the FD (Financieel Dagblad – Dutch Financial Times) the shareholders are the driving force behind decision because of insufficient shareholder value. Document technology was worth 11BUS$ in 2015 and the business process outsourcing division about 7BUS$. The business process outsourcing division focuses on growth markets such as transport, commercial enterprises and governmental institutions. The independent BPO company will enhance and improve their services. CEO Ursula Burns says that the split will reenforce both companies. Xerox also announced a plan to reduce costs by 2,4BUS$ in the coming three years, of which 700MUS$ in 2016.