I blogged yesterday about news that Xerox is going to restructure its services business in Europe. I was told by a source that this will involve hundreds of redundancies.
I also asked the question: Do hardware firms and services suppliers have incompatible DNA?
I have had an interesting response on the blog from a Ken Ericson. He is head of communications at Xerox based in the US. Who says social media will never take-off.
Ericson admits there is some restructuring but outlines why he thinks ACS and Xerox are compatible.
This is what he said: “Speaking on behalf of Xerox, I wanted to clear up some of the points in your article: I’d have to disagree with your premise of “incompatible DNA.” Our differentiated mix gives Xerox strength to help clients simplify business challenges. Here’s an example: a few weeks ago we demonstrated how Xerox innovation is being applied to services from ACS in industries like transportation and healthcare. These are new ways we’re helping our clients and strengthening our annuity-based business model. There’s no question many companies are facing headwinds in Europe, but we’re managing it with focus, discipline and sound investments to tap into high-growth areas, most recently acquiring customer care providers WDS and Unamic. Our restructuring, the details of which will be announced in November, will make us even more efficient and responsive to the needs of our customers and changing business.”