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| Fujifilm to take over Xerox as photocopier demand drops | Fujifilm to take over Xerox as photocopier demand drops |
| (1 day later) | |
| Japanese technology firm Fujifilm is to cut 10,000 jobs by 2020 at its Fuji Xerox subsidiary saying it faces an "increasingly severe" market. | Japanese technology firm Fujifilm is to cut 10,000 jobs by 2020 at its Fuji Xerox subsidiary saying it faces an "increasingly severe" market. |
| It also plans to take a majority stake in Xerox and combine the US company into the joint subsidiary. | |
| Fuji Xerox, which makes printers and copiers mainly in Asia and Australia, has been hit by falling demand. | Fuji Xerox, which makes printers and copiers mainly in Asia and Australia, has been hit by falling demand. |
| Formed in 1962 it was the longest running joint venture between US and Japanese companies. | Formed in 1962 it was the longest running joint venture between US and Japanese companies. |
| Once it has absorbed Xerox the company will be called "New Fuji Xerox" and will be 50.1% owned by Fujifilm. | Once it has absorbed Xerox the company will be called "New Fuji Xerox" and will be 50.1% owned by Fujifilm. |
| "New Fuji Xerox will benefit not only from its size but also from its solid management resources, including strong brands, state-of-the-art technologies and excellent human resources," Fujifilm said in a statement. | "New Fuji Xerox will benefit not only from its size but also from its solid management resources, including strong brands, state-of-the-art technologies and excellent human resources," Fujifilm said in a statement. |
| Fujifilm has been looking to expand into print services and medical imaging. | Fujifilm has been looking to expand into print services and medical imaging. |
| Global demand for copiers and printers has declined, as people have switched to emailing documents and using smartphones to scan paperwork. | Global demand for copiers and printers has declined, as people have switched to emailing documents and using smartphones to scan paperwork. |
| There has also been a push to use less paper and recycle more. | There has also been a push to use less paper and recycle more. |
| Digital world | Digital world |
| Xerox has been under pressure from investors to re-invent itself and develop new strategies and products. | Xerox has been under pressure from investors to re-invent itself and develop new strategies and products. |
| Billionaire investors Carl Icahn and Darwin Deason, who collectively hold over 15% of Xerox, joined forces last week to push Xerox to explore strategic options and negotiate better terms with Fujifilm. | Billionaire investors Carl Icahn and Darwin Deason, who collectively hold over 15% of Xerox, joined forces last week to push Xerox to explore strategic options and negotiate better terms with Fujifilm. |
| Technology analyst Chris Green said: "It is not a surprise. The surprise is it did not happen sooner. | Technology analyst Chris Green said: "It is not a surprise. The surprise is it did not happen sooner. |
| "Companies didn't make much money from the actual photocopiers and printers themselves, but more from the sale of toners and paper. | "Companies didn't make much money from the actual photocopiers and printers themselves, but more from the sale of toners and paper. |
| "They now need to consolidate and look at developing new software, storage solutions and providing services." | "They now need to consolidate and look at developing new software, storage solutions and providing services." |
| Xerox also reported a loss of $196m (£139m) in its fourth quarter, but that included a $440m charge related to tax changes in the US. | Xerox also reported a loss of $196m (£139m) in its fourth quarter, but that included a $440m charge related to tax changes in the US. |
| Without that charge income rose 26% to $226m, sales were flat at $2.75bn. | Without that charge income rose 26% to $226m, sales were flat at $2.75bn. |