Thread regarding Xerox Corp. layoffs

The cloak & dagger communications around this round of layoffs is not doing Xerox and it’s leadership team any good. Instead, it makes it look like they are afraid and/or embarrassed to admit what's going on and really have no plan.

As other mentioned, I also caught this.

https://www.bloomberg.com/news/articles/2018-12-14/xerox-becomes-a-fallen-angel-as-moody-s-cuts-rating-to-junk

Moody’s is basically saying that the company may not have the cash flow to pay-off these notes when they come due in 2021. The problem for Icahn & Co. is that all of projected cash savings from the cost reductions in headcount, operations, and R&D are going to be eaten by the high interest rates that Xerox will have to pay for its junk-status bonds (Baa3).

Going forward, Xerox’s stock will be further suppressed, which is at $24.45 today. That number represents a 26% decline from the January of 2018 share price of $32.83 when the Fuji deal was announced. In February when the lawsuits began, Icahn stated that Fuji was grossly undervaluing Xerox and should have offered $40 per share at a minimum. This was his key reason for launching a proxy coup to oust Jacobson & Co. Even with a little bump from the stock buy-back gimmick in July that pushed the price up to $28.00, $40.00 appears to unachievable at this time. The Street has basically said that further cost-cutting is not going to save Xerox and that Icahn was wrong.

Even if a white knight arrives and offers to buy all of Xerox for a ‘typical’ share price premium of 120%, that’s just $28 to $33 per share based on current share price, which is far below what Icahn promised. He could be facing his own shared-holder revolt soon. Plus, no one is going to buy Xerox right now. A potential suitor is better off offering to buy a key piece or two at a step discount as Xerox will be desperate for cash going into 2021 or simply pick-over what’s left should Xerox default on its obligations 2021 and fall into bankruptcy.

Xerox downgraded to junk status by Moody's

Sabotage may be the dumbest idea I've seen. It would make you unemployable to others at best and civilly/criminally liable. Don't be an entitled brat throwing a tantrum.

"No new projects ate being funded in 2019"

There are new projects being funded in 2019. I suppose not all organizations are the same.

"Actually ACS was a great strategic diversification move"

"Xerox didn’t need to destroy ACS, it was already imploding when Xerox purchased it. "

It should have been a great strategic diversification move. But correct, it was imploding before it was acquired by Xerox. Xerox should have know the problems they were getting into, but I don't know if they did. It could have been used as an opportunity to get into the services business, but it doesn't appear they did their homework, or took the initiatives to fix what was broken with ACS. It seems they just let it run the way it had been run, so it continued it's downward spiral.

You can argue over who's to blame, but you can't deny that Xerox is dead. It will live on as a brand. However, within 2 years it won't exist in Rochester any longer.

ACS might have been a good purchase if it was what it was billed to be. Check the facts. The lawsuits for botched implementations started rolling in shortly after the purchase was finalized. Xerox didn’t need to destroy ACS, it was already imploding when Xerox purchased it. That’s what makes Deason’s actions even worse in my mind. He made out on the ACS sale at the expense of Xerox but that wasn’t enough. He had to do everything in his power to pull as much cash as he could out of Xerox even if it means destroying the company.

What are you, one of those #resist snowflakes?

It is defenetely a sad time at Xerox, I hope it turns around. I also hope HE doesn’t visit Webster anytime soon. That would not be motivating...

I jumped ship a couple of years ago, after almost 30 yrs with Xerox. I know it is a difficult and stressful time. But once you are out, you will be amazed to find great, respectful, and honest employers are ready for you.

But.... this is truly all a result of letting Ursula Burns ever be part of Xerox. Had she never been hired into the company it would be a much different story today.

Taking the low road feels so much better.

Or... Let's take the high road. Let's show ourselves, our friends, our kids/family how we gracefully respond to adversity with class, dignity and a plan to move forward.

I agree, the current team leading our company is the most disengenuous cabal of thieves Xerox has ever had to suffer. The last 4 CEOs we're sinply stupid. John V is pure evil greed.