Xerox Split Follows In HP’s B2B Footsteps

Hewlett-Packard made a big move last year when, in June, the computer giant announced plans to split into two separate companies — one consumer-facing unit and another to focus on enterprise services.

Now, it seems another giant is following in a similar path.

Copier and printer maker Xerox announced late last week that it would also be splitting into two separate operations, though both, according to reports, will focus on business-facing operations.

[bctt tweet=”Xerox announced it would be splitting into two separate operations.”]

One side of the split will be its services business, a unit to aid corporations’ migration from paper by helping customers digitize paper documents. This side of the business will also reportedly help companies with payment processing and printing services. According to reports, these operations led to $11 billion worth of business for the company last year.

The other, separate business to emerge will be a unit that aids corporate clients in outsourcing key functions, like HR, payroll and accounting, while also helping to automate some of these processes. Xerox netted $7 billion in sales from this type of service last year, reports said.

“I am confident that the extensive structural review we conducted over the last few months has produced the right path forward for our company,” said Xerox CEO Ursula Burns in a statement. “We will now position the companies for success.”

Reports added that activist investor Carl Icahn was the main force behind the decision to split the company.

In his own statement, Icahn said the investors “applaud Ursula Burns and Xerox’s board of directors for recognizing the importance of separating Xerox into two publicly traded companies.”