all cores will be eliminated, first quarter 15% reduction, second quarter aimed for 10%. operations and support will move into Xerox, and existing branches will move under existing leadership. fully renamed one Xerox by 2026
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XBS is a sham. Nice idea but it didn't work in the long run. Fun times being a wholly owned subsidiary but no discipline and not really held financially accountable to the parent company until Carl came in and ki-led the buzz. Certainly not the main cause of demise of the big X as the overall business is shrinking with no innovation to grow, but given all of the consolidation, can't believe that these local XBS units still exist. Duplicate people in duplicate roles with VP's who line their own pockets at the expense of the total operation. Doesn't make financial sense unless X sells off local business to authorized partners to lower operating cost while having dealer take all of the risks.
It's not $60m/3500 for severance, it's $60m total savings and it's crazy low. That # would incorporate salaries, severance, benefits.
$50k salaries x 3,500 is $175,000 plus 6 weeks of severance and accrued vacation. Unfortunately, I might be high on the salary estimate.
It's probably in the $250m neighborhood with benefits, 401k, etc. factored in.
If 60 is right then we’re gonna get skimped out on severance. $60M/3500FTE = ~17k/ person. Roughly 6k per month for 3 month. Sounds tough.
60 is hilariously low if the goal is 15%. It is way way more.
I heard the all in severance package and reduction in force equals upwards of 60M+. That is a big hit to the Big X however, why not get it out of the way, off the books and be more attractive to potential buyers. But RB might be correct too.
@zgu+1r3dNXZw although RB is correct in that statement that would not be aligned with the future GTM. Mothership is getting out of the business of overhead and liabilities while going to the dealer model like a freight trane. They would rather overpay carriers because it reduces footprint and liabilities within the company. Easier to shrink, pivot and diversify.
Makes sense to have already existing cores do the legwork when you consider the overages that are already being paid to the third party carriers from hcl's consistent mistakes.
Leadership is having trouble remembering what lie they told to whom. For some it’s becoming far too easy to just repeat what they’re being told as they’ve become the same thing they once despised. Don’t be fooled - they’re taking the money while they can but the fuse is getting shorter by the day.
RB spoke in sales kick off meetings how XBS operations far exceeds Xerox lethargic approach with equipment orders, local deliveries and local installs. XBS Core warehouses will be taking over Xerox operations, not renewing carrier contracts. Consolidation of these teams will occur in near future, however in favor of XBS.
We were told to:
Stay focused
Work as you normally do
Don’t listen to rumors
Take care of customers
Effects “other “ cores, not yours
About time. XBS are a drain.
Where have you been? This happened years ago and you have been in denial because you still have familiar faces around you. It will be relabeled one circuit city or radio shack by 2026, bro.
Former core offices have been closing for months.