(Update, Jan. 2) – As of Jan. 1, Xerox has officially split into two companies.
The company announced the split in January 2016, and the second company, Conduent, will reportedly act as a bridge to help companies simplify their business processes.
According to officials, Xerox will keep its name, and continue to function as a document technology company.
In addition, Xerox’s former CEO, Ursurla Burns, will now serve as chairman of the company’s board.
Burns has reportedly received a nearly $17 million retirement package, which is the largest for any female or minority presently at the helm of a Fortune 500 company.
She has been replaced by former Kodak executive Jeff Jacobson.
(From May 20) – Xerox Corp. has announced that CEO Ursula Burns will instead serve as chairman of its board, once the company splits into two companies later this year.
Xerox said it is currently searching for CEOs for both of the new companies, and that Burns will stay in her current role of CEO until the company is divided.
“I am looking forward to my role as chairman of the document technology company, and to continuing my deep personal and professional commitment to its success,” Burns stated. “I remain focused, however, on ensuring Xerox, and the post-separation companies are positioned to build on our strong heritage, and capture new opportunities we have identified to create value for employees, customers and shareholders.”
Burns had become the first African-American female CEO of a fortune 500 company when she took the position in 2009.
Visit http://news.xerox.com/news/Xerox-names-chairman-of-post-separation-Document-Technology-company for additional information regarding the company’s split.
(From January 29) – Xerox Corp. has announced the firm will officially split into two publicly-traded companies, one that will focus on hardware, and another that will focus on services, Xerox CEO Ursula Burns stated.
According to Burns, less than one to two percent of the firm’s employees should be impacted by the decision.
She made the announcement Friday, after the company released its fourth quarter revenues, which fell by about 8 percent from last year’s fourth quarter revenues, to $4.7 billion.
Burns said the two new companies would focus on the different needs of clients, and have different operating models, each with its own in-house CEO.
“What we found was that having two companies having fundamentally different ethos, different movements; one grows a little bit slower than the other, one needed a little bit more investment in development and developing its market than the other,” she stated. “One threw off a lot more cash than the other. It was probably better that we split, so we could be more flexible, more responsive, and essentially more fit and focused for the markets that we’re attacking.”
Billionaire investor Carl Icahn owns eight percent of the shares at Xerox, and, as its second largest shareholder, will hold three seats on the board for company services.
Yet, although Icahn said he supported the move, Burns said the decision had nothing to do with shareholders’ opinions.
Burns did not comment on her role with the company in the future.