Thread regarding Xerox Corp. layoffs

@j2 , it took approximately 15 minutes of googling and 1 conversation with an actual manufacturing customer to validate that the ELEMX 3D Printer was essentially a proofing device with no real use case or market demand. Just like the six color presses and metallics and neons, or the amazon alexa integration, RPA, etc. Xerox was constantly coming out with niche solutions/tech with absolutely no market demand. We had one of those hardcore offline "convenience staplers" in our demo room that could put a staple through a 2x4... I had a customer order 20 copiers, but because she saw that stapler in the demo room she ordered +40 of just the staplers for her exec staff. Xerox = new solutions in search of a market, not practical alignment of existing tech with existing needs.

@cg the results will not improve bees use the layoffs will accelerate the revenue decline and salary expense is being replaced by interest expense. 26 and 27 will continue the disastrous path of 23, 24, and 25.

I bet they wish they had the money back they invested into metal 3d printing: which they were advised NOT TO DO! With the tech center, they wasted over $100 mill.
2023-24 The AI mantra being repeated over and over
2024 — REINVENTION
2025 — Xerox is an IT provider now

Buh Bye Now. 👋👋👋

Can you say …. Toast. No jam.

@c1 Layoffs are scheduled for each quarter of this year plus into next year as part of the rightsizing after the Lex merger. The financial picture will drive a little bit higher numbers then in 2027 the layoffs will continue but not due to merger needs but due to financial and business needs.

@as " why is there an abysmal lack of urgency to try and solve this? Or is chapter 11 their mindset / ultimate goal for whatever reason? "

Chapter 11 is like no other type of failure.. I'm thinking the reason there is no rush to fix things as you say is that they are blinded by the problem and can't think or know of any way out. In one sense they have been trying to fix the problem with pay day loans and JVs but these fixes aren't making the problem better.. it's like a dr-g addict trying to kick the habit without others help.

What is the saying "what got you here won't get you there" that is used with high end sports players as they work on fine tuning there games to become elite players. Except in this case it's the opposite what got you into the wreck isn't going to be the same skills to get you out and you have no way to even know, see or use those skills.

At end of the day I believe a change in SLT will be needed under Chapter 11 to come out the other side. In addition I don't see this SLT (even with recent change) capable of turning around from the edge of Chapter 11 and being required to file Chapter 11 and reorg under Chapter 11.

@c1 The standard RIGP is funded and insured by the fed. There is no intention of saving the company evidenced by years of inaction or half assed efforts. This is a looting. Nothing more.

@as The layoffs and pension funding are being put off waiting for CH11. Severance post CH11 will be $0, and they will skip out on fully funding the pension plan.

@bj Odds on you being correct is ~89%. 89% of CH11s go to CH7 within 5 years.

CH11 is the plan. That is why they put their IP in a drop down shell corp on loan terms with a 3rd party. Look for the filing in Q2 or Q3. They got around the JCrew Blocker, and in the future, they will have to invent a Xerox Blocker for preventing loan shenanigans like this.

Xerox will go ch 7 if they file ch 11 and here is why, Xerox clients are large enterprises and as soon as the go ch 11 they will go to other vendors out of fear. These large clients stay with xerox because it is safe decision. Not many firms make it successfully through ch 11 its goodbye xerox if they try.

“At the end of the day?” Optimism for xerox? … is this Raymond?

Agreed but maybe you or the community can answer this - if Xerox is serious about surviving, why is there an abysmal lack of urgency to try and solve this? Or is chapter 11 their mindset / ultimate goal for whatever reason? If so that’s a different matter altogether but logically, wouldn’t a company want to try and avoid this…?They should be throwing everything but the kitchen sink at this- so shouldn’t their first immediate and absolute necessary step be to cut 25-30% of the workforce…? As in like NOW? Why are they employing 26k when they are worth 220mi? This should be a 7K company - and even then I think that is way too high but for the fu--ing life of me I have no idea why they are not pulling the trigger. They are worried about the stock? It would crash upon an announcement?? Who cares - what difference it makes? The stock is worthless and investors have no confidence in the company. Numbers don’t lie. I’m just saying that I question how serious Xerox are about saving this - it’s all talk and no action. Cutting 500 people every 3 months is simply not good enough. It’s pathetic. They have to stop the bleeding with some sort of urgent action on a mass scale and they are failing miserably. Try something - anything, but be urgent SLT. Take action. Be transparent- act like adults. I’ll leave a final note - I read a stat that only approx 10% of companies come out of chapter 11. That stat says it all and couple that with the mess Xerox are in - I’d be enlightened to see how they persuade creditors and all the folks that they have a business plan to get out of this because everyone can see it’s not working.