SV News Service
Amidst some rumors the company’s European operations may file for bankrupty protection, struggling Xerox said it lost $ 167 million in the third quarter as sales dropped four percent to $ 4.46 billion.
Paul Allaire, Chairman, Xerox said the results were “quite obviously not acceptable.”
Xerox is tackling the crisis by selling assets and cutting expenses, including layoffs. Reportedly among the items up for sale is the renowned Palo Alto Research Center (PARC), where many great computer inventions, including the laser printer, mouse and graphics users interface, have sprouted, few of which Xerox has been able to capitalize on. Xerox is looking for a partner to take a stake in PARC and get access to its innovations.
Also for sale are Xerox’s China operations, its ownership in a joint venture with Fuji, and its interest in spin-offs such as ContentGuard and Inxight. Xerox also looking for investors in its inkjet printer business.
Xerox does not expect to see a turnaround until next year. In all, Xerox wants to cut $ 1 billion in costs and sell up to $ 4 billion in assets. Analysts expect lay offs of around 5000 workers.
The company is also in danger of losing its independence as shares sank to below $ 9 a share, a takeover attempt of Xerox is widely expected.