This is close to crazy. Xerox wants to buy HP. How? By appealing to shareholders while urinating on employees.
Xerox is taking the gloves off to launch a hostile takeover bid for HP Ink, er, Inc – by courting its shareholders with a 33-page document explaining why the pair will be a corporate match made in heaven for investors.
Shareholders would win, and employees would lose, as a fish tries to swallow a whale.
On the $2bn of “synergy savings” promised, Xerox said it will consolidate from 8,000 to 3,000 suppliers to cut costs; slash its own IT bill to 1 per cent of revenue from 4 per cent; simplify stock keeping units and beef up inventory management, as well as rationalise (ie sell off) real estate in 555 locations to cut property owning down to just 261 sites. There will also be some role duplication erased and a “reduction” of layers in the organisation.
Employee layoffs. When Apple does that you’ll know the end is near.