As many as 10,000 jobs globally may be slashed at Fuji Xerox as the company struggles to cope with a decline in the photocopying business and waning demand for office printing.
Fuji Xerox, with 47,000 employees globally, is a joint venture between Japan’s Fujifilm Holdings (75%) and US company Xerox (25%).
The job-cuts warning came ahead of the announcement that Fujifilm will take over Xerox in a $6.1 billion deal. Xerox will be combined with the existing joint venture to gain scale and cut costs, Reuters said.
“The market environment surrounding the company’s subsidiary Fuji Xerox has grown increasingly severe,” Fujifilm said in a statement.
A planned restructuring – seen to lower annual costs by 50 billion yen from the year ending March 2020 – would include slashing jobs and closing or integrating manufacturing bases, reported Forbes.
Consolidation of R&D, procurement and other operations would enable Fuji Xerox to deliver at least $1.7 billion in total cost savings by 2022, the two companies said.
The combined company will keep the Fuji Xerox name and become a subsidiary of Fujifilm, with dual headquarters in the United States and Japan. It will be listed in New York.
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