As part of its drive to "reinvent" itself, announced last January, Xerox will cease production of the iGen 5 color toner sheetfed digital press and Nuvera black toner presses. On January 3, Xerox had announced a shift to a business unit operating model for its structure, a 15% reduction in its workforce and a simplification of its print offering.
"This quarter, Xerox orchestrated one of the most intense periods of structural change in its recent history, continuing the hard work required to reposition our business for long-term sustainable growth. We have implemented comprehensive and strategic changes to our operating model in order to align our organization more precisely with the needs of our buyers and improve our efficiency." says Xerox CEO Steve Bandrowczak in the press release.
A reduced portfolio of sheet-fed machines
The American manufacturer now reveals that it is the iGen 5 presses released in 2015 and the Nuvera that are bearing the brunt of these strategic changes. The delivery of orders for these two ranges "is expected to continue until 2024 or until stocks are exhausted" says the group. Xerox will continue to support these platforms for the duration of the contracts.
Xerox is continuing to offer its Iridesse and Versant sheet-fed presses and Xerox PrimeLink multifunction digital printers, a marketing strategy made possible by the recent multi-year contract signed with Fujifilm "continue to meet customers' needs in a wide variety of applications ranging from photography and book publishing to folding cartons".
As for the Xerox Baltoro HF sheetfed inkjet press, Xerox says it is continuing to take and deliver orders, but announces that it will "Evaluates strategic options for our high-speed inkjet technology".
The focus is on automation, intelligence, assistance, personalization and... reel printing
With this simplification, Xerox wants to focus on "value-added services such as automation, intelligence, assistance and personalization", said John G. Bruno, President and COO of Xerox, during the presentation of its first-quarter results for fiscal 2024. The $6.9 billion group cites the Xerox FreeFlow, Predictive AI Pro and XMPie workflow software suites.
What's more, as Xerox CFO and Executive Vice President Xavier Heiss points out, "revenues, earnings and free cash flow declined year-on-year, mainly due to a reduction in the equipment order book in the previous year's quarter and the intentional reduction in non-strategic revenues." Revenues in the Printing & Other segment fell by 13% year-on-year in the first quarter.
In addition to automation, intelligence, assistance and personalization, Xerox is also coveting the reel-to-reel digital printing market as a means of boosting sales. The manufacturer recently announced an agreement with a third-party supplier of high-speed continuous feed inkjet.
