TOKYO: Japan’s Fujifilm Holdings said it is cutting 10,000 jobs globally at its joint venture with Xerox Corp. to cope with a decline in the photocopying business, amid speculation of a new deal between the two companies.
Fujifilm owns 75 percent of the joint venture, called Fuji Xerox, which accounts for nearly half of the Japanese company’s sales and operating profit. Fuji Xerox had over 47,000 employees as of March 2017, according to its website, meaning the job cuts would likely slash its workforce by more than a fifth.
Xerox Corp. owns the remaining 25 percent of Fuji Xerox and has faced pressure from investors to explore strategic options and negotiate better terms on the venture with Fujifilm.
The Japanese company’s job cuts announcement comes after the Wall Street Journal, citing people familiar with the matter, reported that Xerox Corp. is nearing a deal with Fujifilm that would cede control of the US photocopier pioneer to Fujifilm.
“The market environment surrounding the company’s subsidiary Fuji Xerox has grown increasingly severe,” Fujifilm said in a statement on Wednesday.
Fujifilm said it would book restructuring costs of ¥49 billion in the second half of the fiscal year through March, lowering its operating profit forecast for the year to ¥130 billion from a previous ¥185 billion.
It said the planned restructuring measures involve job cuts and closing or integrating manufacturing bases, and would lower annual costs by ¥50 billion from the year ending March 2020.
The Journal report said a deal would be announced as soon as Wednesday, and would include plans to combine Xerox with the five-decades-old Fuji Xerox. Xerox shareholders would own just under half of the resulting entity and would get an implied premium for their stock and cash, it said.
The talks could still fall apart or the terms could change, the paper said, adding that Xerox shares would continue to trade following any deal.
Fujifilm and Xerox declined to comment on the report.
Xerox has been under pressure to find new growth sources as it struggles to reinvent its legacy business amid waning demand for office printing. Fujifilm is also trying to streamline its copier business with a larger focus on document solutions services.
Xerox has been targeted by activist investor Carl Icahn and shareholder Darwin Deason, who joined forces last week to push Xerox to explore strategic options, oust its “old guard,” including its CEO, and negotiate better terms for its decades-long deal with Fujifilm. Icahn is Xerox’s biggest shareholder, with a 9.72 percent stake.
Fujifilm says to slash 10,000 jobs at Xerox joint venture
Fujifilm says to slash 10,000 jobs at Xerox joint venture
Saudi POS spending jumps 28% in final week of Jan: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending climbed sharply in the final week of January, rising nearly 28 percent from the previous week as consumer outlays increased across almost all sectors.
POS transactions reached SR16 billion ($4.27 billion) in the week ending Jan. 31, up 27.8 percent week on week, according to the Saudi Central Bank. Transaction volumes rose 16.5 percent to 248.8 million, reflecting stronger retail and service activity.
Spending on jewelry saw the biggest uptick at 55.5 percent to SR613.69 million, followed by laundry services which saw a 44.4 percent increase to SR62.83 million.
Expenditure on personal care rose 29.1 percent, while outlays on books and stationery increased 5.1 percent. Hotel spending climbed 7.4 percent to SR377.1 million.
Further gains were recorded across other categories. Spending in pharmacies and medical supplies rose 33.4 percent to SR259.19 million, while medical services increased 13.7 percent to SR515.44 million.
Food and beverage spending surged 38.6 percent to SR2.6 billion, accounting for the largest share of total POS value. Restaurants and cafes followed with a 20.4 percent increase to SR1.81 billion. Apparel and clothing spending rose 35.4 percent to SR1.33 billion, representing the third-largest share during the week.
The Kingdom’s key urban centers mirrored the national surge. Riyadh, which accounted for the largest share of total POS spending, saw a 22 percent rise to SR5.44 billion from SR4.46 billion the previous week. The number of transactions in the capital reached 78.6 million, up 13.8 percent week on week.
In Jeddah, transaction values increased 23.7 percent to SR2.16 billion, while Dammam reported a 22.2 percent rise to SR783.06 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
