Fujifilm to cut 10000 jobs at subsidiary amid Xerox takeover

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Japan-based Fujifilm announced the formation of a new company that will combine part of Fuji with Xerox Wednesday morning.

Xerox shareholders will receive a $2.5 billion cash dividend, or about $9.80 per share.

Fujifilm will own 50.1% of the combined company and provide operational support and transformational leadership.

I am confident that Fujifilm's ability to drive change as well as its experience of successful reinvention will give a competitive edge to the new Fuji Xerox, delivering significant value creation to shareholders of both the new Fuji Xerox and Fujifilm. Fuji Xerox is even known as a rare success story for a cross-border joint venture.

Through restructuring and other reforms, the companies expect to save $1.7 billion a year by 2022. The new Fuji Xerox, he added, will be better positioned to compete in today's environment with truly global scale, increased presence in fast-growing markets and innovation capabilities to effectively meet customers' rapidly-evolving demands.

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News10NBC is told Jeff Jacobson will be keeping his job as CEO of Xerox.

As a first step, Fujifilm announced Wednesday that it will lay off 10,000 employees worldwide at the co-owned subsidiary.

At the end of the transaction, the shareholders of Xerox would hold slightly less than half of the new entity, according to WSJ, citing sources close to the case.

The combined company will maintain the Xerox and Fuji brands within their operating regions. The news came days afterWall Street Journal disclosed that activist Xerox stakeholders Carl Icahn and Darwin Deason were urging Xerox to explore a sale. The cash dividend represents a 30% to Xerox's unaffected share price of $30.35 on January 10 before the reports of a possible deal surfaced. The board will include seven members - including Komori - appointed by Fujifilm's board and five independent directors appointed from Xerox's board.

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