Xerox services business in Europe retrenches in face of headwinds

Xerox is restructuring its European services business which will see senior staff and sales people let go as the company shies away from growth.

Xerox is restructuring its European services business which will see senior staff and sales people let go as the company shies away from growth in preference for protecting what it has.

As exclusively revealed by ComputerWeekly the company will announce restructuring plans this month. Computer Weekly understands the European services arm of Xerox is letting sales and pre sales teams go as well as the leadership in a bid to save $18m to contribute to an overall Xerox target of reducing costs by hundreds of millions of dollars.

A source that knows the situation said that Xerox is not going for growth in its European services business but wants to protect the business it already has. “Xerox is getting rid of sales and pre sales so it will not be able to grow.”

Xerox’s European services business includes IT outsourcing, financial services BPO and HR outsourcing.

Ken Ericson, head of communications at Xerox said: “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.”

Xerox acquired US IT and business process services giant Affiliated Computer Services (ACS) for billions of dollars in 2009 to grow its services business. The purchase gave Xerox a services footprint in over 100 countries from 500 locations.

Speaking at the time Xerox CEO Ursula Burns said the deal was "a game-changer ".

"By combining Xerox's strengths in document technology with ACS's expertise in managing and automating work processes, we're creating a new class of solution provider," she said. Xerox wanted to use its brand to grow ACS's business outside the US with a strong focus on Europe.

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