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Japanese tech giants Fujifilm announced that there will be “personnel reductions of 10,000 people domestically and overseas” by March 2020 at Fuji Xerox, which is jointly owned with Xerox.
The massive reduction in the conglomerate's workforce is reportedly caused by an adverse market environment. “The market environment surrounding the company’s subsidiary Fuji Xerox has grown increasingly severe,” Fujifilm's statement said.
According to a Fujifilm spokeswoman, the subsidiary employs approximately 46,000 people in total.
The Tokyo-based firm said it hopes to save $460 million from the cuts, which will affect one-fifth of its global workforce, the Wall Street Journal reported. Fuji Xerox accounts for nearly half of the Japanese company’s sales and operating profit.
Fujifilm owns 75 percent while Xerox Corp holds 25 percent of the joint venture.
Fuji Xerox – a 55-year-old joint venture – manufactures printers and copiers mainly for offices in the Asian and Oceania regions. Fujifilm started out in photography in 1934 but has, over the past decades, expanded its operations to include cosmetics and medical equipment.
Xerox also amended its deal with Fujifilm in which control of the American corporate giant will be turned over to the Japanese company. The arrangement follows the directives of shareholders after an accounting probe into the company's oceanic operations.
Xerox has been under pressure to find new growth sources while Fujifilm is trying to streamline its copier business. Xerox has a market value of $8.3 billion.
Xerox shareholders will receive a $2.5 billion special cash dividend or approximately $9.80 per share.
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