Coming in Q1 2024 the massive shakeup and reorganisation we have all been waiting years to happen. Look for Xerox to remedy the Fuji relationship, SAG expense, global geographies that are under water, and fix having competitive product (sold by FBI and Sharp) that are newer than Xerox models. Anticipate the resizing of Xerox, trading off of existing Xerox Geographic regions to Fuji, in exchange for reduced competitive pressure an alliance with Sharp and Fuji. Expect massive shakeup and reorganisation. Resulting in staff reductions in Q1 2024.
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So a little over a year ago Techs in a lot of areas were not actually Xerox employees. We worked for a company called Decision 1. When we would lookup a part to use on a machine it would show a price / cost for that part. That price was what Xerox used to write of the books as an expenditure. But, when we actually used the part, it showed a higher cost for that part. I had always assumed Xerox was charging D1 a fee for using the part, but that is not what was causing the difference in pricing / cost. D1 field service techs were routinely beating Xerox techs in parts usage / cost per service call volume. Instead of Xerox looking at their own techs and trying to figure out why D1's parts cost consistently were lower than Xerox parts costs, they decided to write off parts at a higher price on D1 handled calls so as to make the playing field look more even when it comes to cost of parts usage. As techs, were were perfectly happy working under the D1 umbrella because it afforded us a certain amount of buffer from Xerox's own insane nonsense, and we loved that. D1 consistently beat Xerox in all categories you could want to track, costs, response time, reliability, overall customer satisfaction, you name it D1 beat Xerox every time all day long. After 5 years of this arrangement and D1 never having gotten an increase in price from Xerox, money became tight because inflation caused increases in a lot of expenditures to D1. Xerox flatly refused to up the ante even a penny. D1 decided, and rightly so I must admit, Fine, you don't want to play ball? Well guess what, take it all back because we are calling the game. Xerox was so blind sided by this it made their heads spin. D1 literally gave Xerox 30 days to make the switch. And yet another Xerox Cluster FUBAR ensued, or perhaps I should say continued because it never does end with Xerox. Ever. Reinvention? IF, and that is one big IF when it comes to Xerox, (mis)management had been doing what was necessary all along, why would you need to reinvent anything? That would be like Thomas Edison saying 100 years after inventing the light bulb, "Opps! I should have made the filament out of nylon instead of tungsten, I will reinvent that for you."
No, instead Xerox is focusing their attentions on DEI garbage and I suspect the reinvention is nothing more than firing people who are not of the correct color so they can be replaced by people who are a better fit for the DEI model. Experience and qualifications be dammed, what color are you?
So on Thursday of this week, Xerox fired all of the field service area managers in the Georgia / South Carolina area. No information given to technicians as to who to contact for assistance, who will be approving our time cards. The only way I found out it happened was another tech in the area was with an analyst at a machine when the analyst began getting "panic" phone calls from people trying to figure out who to contact to get assistance with no area managers left in sight. The tech called me to tell me both of our managers has been let go. Reinvention? I think it's more like the same old song and cluster F***.
Let the games begin. They have NO idea how they are going to cut 15% of staff worldwide. Most of it will come out of USA due to easier labor laws on layoffs. They are scrambling now on how to make headcount cuts happen. All mgt knew is they needed to cut 15% from the overall labor line going forward. This reduction is after headcount is down 10% from 2022 to 2023 via natural attrition. If labor is cut 15% you can figure that your general and operating expense is cut even more. Going to be an ugly year. More disruption - they even announced a Chief Disruption Officer (like we needed that!) - less people, more work, more stupid mgt requests for reports and how can we do more with less, and more competition as we are spinning. It is going to get ugly.
Don't think the analysts can serve up soft ba--s anymore to Steeevie - I swear they have Xavier on those calls because no one can understand a dang thing he is saying. I'll take a stab at the next earnings call:
Analyst Credit Suisse "Hi guys and thanks just a quick one what is this reinvention model over the next year or so look like in terms of revenue"
Xavier starts to talk but immediately cut off by Stevee "I'll take that see what we do is sell off or donate anything and I mean anything that is not bolted down because the jig is up our Customers can buy a newer version of the same hardware we sell at half the price through the Fuji US Channel (Sharp) so see our Customers have to be fricken stupid as a rock to keep buying from us really stupid. So I came up with this AI thing as a hail mary play to try to sell it to one of those startups but then SVB failed so now I'm pretty much just making stuff up at this point". "PS Please don't ask me about Drupa all of our major accounts up for renewal are getting 1st class airfare and hotel stays care of our competition and spending twoo weeks with them in Germany - oh why fid I take this job".
They did the top level today. You know they will start to cut lower to get to 3,000 by end of QTR. It is going to be another ugly and disorganized year. Fasten you seat belts.
The entire revenue model is a house of cards at best, Ponzi scheme at worst. Truth likely in between. This makes in the know but unethical leaders stick around. Also, may I store my beer at your refrigerator so I can count it as a sale?
When Icahn leaves, you know it’s bad. I’m wondering when Wall Street analysts are gonna have the light bulb moment “wait, you told us this same thing in 98, 05, 18,..”. Or maybe they only care about the dividend, assume flat stock price as it has been for decades (ignoring reverse splits).
More to come in Q1. Lots more. Stock is up so these changes are real.
As expected, the stock started to fall immediately after the dividend cut off date.
xrx percentage of float shorted? Above 10?
Selling off production, toner plant and ff s/w -deal was done in October - now grow up if u still there buy a clue it's on u peeps u will certainly not hear this from your boss their job if to keep you there for maximum impact (aka shipped off and counted as an expense saved)...
Stock is up 30% in month of December (from $14.10 to $18.50 today). It is not business as usual - we don't have new products, the market for print and office is not expanding. We don't have stellar results for 2023. Something is up!
Only a fool would buy this stock ..
Now, this guy knows what he's talking about.
“Watch the stock…”
You’ve convinced me. I’m going to liquid up my 401k and put it all in xrx. Every other analyst on the planet rates xrx as a sell but you really seem to know what you’re talking about…Hello!
Watch the stock - yet again today - we outperformed the general market. Hello!
Reorg!!!...more like Regurgitate!
How many times has the company re-organized or consolidated to end up
being the same lumbering mess .
Nobody at my core even pays attention to the stock or how the company is actually doing in the real world, not even my manager. There are people who will be genuinely shocked when we are eventually IRF'd, sold, dissolved, etc.
Stock is at all time high for 2023 - more than our Uncle Carl cashed out at. Ya think something is up?
Oh, yea, it is the rest of us su-kers that find out when it is in the news-and we are on the unemployment line. You don't need anything more to confirm something is up for 2024 - other than the stock price is up (it is NOT just that the entire market is up, we are a dog that does not follow the general market-our highest price since 2020, duh!).
Saw our groups 2024 spending plan - no way is our group staying whole on a budget like that - has to be cuts.
Can't wait. Too many overpaid execs that serve no purpose. Get them out
Sounds trill
Something HAS to change - Xerox, and the entire office / print industry are NOT on a path to long term success - declining sales across everyone's results, and now more competitors (Fuji & Sharp) - what's wrong with this picture? No wonder Icahn flew the coop-took his losses and moved on-he is a quick hitter-what has to happen now is a long, hard and risky path, no magic tricks of buying a bigger competitor. Someone has to make the first move toward consolidation. Bring it on. Lets get back to strength if a reorg can do that.
Wet dreaming
Yawnnnnnnnn…..