The unexpected departure of Xerox CEO Steve Bandrowczak last week has unleashed a tide of speculation about the company’s future ranging from a sale to a competitor, to a private equity firm or even, for a spell in Chapter 11 in order to provide the time to reorganise.
The key thing appears to be able to find time to implement change away from the glare of Wall Street and the treadmill of publishing quarterly figures. These tend to highlight deficiencies rather than positive developments which take time to have an impact.
Bandrowczak is being succeeded by Louie Pastor, Xerox’s chief operating officer, without the short hiatus that followed the death in office of CEO John Visentin. That led to the appointment of Bandrowczak initially as interim CEO before he could be confirmed in office in 2022.
Like Bandrowczak before him, Pastor has most recently been chief operating officer and president playing a key role in the initiatives intended to accelerate growth. These are initiatives that had been put in place under the outgoing CEO.
These included the acquisition of Lexmark and IT Savvy and the complete reorganisation of its production print portfolio and development of a strategic road map for this part of the business. This was unveiled just a few weeks and included announcement of a new Xerox developed inkjet press as well as partnerships with other suppliers on a webfed inkjet press and label press.
The argument now is that Xerox needs to focus on implementation having made the deals on which its future will be based. In short, Pastor will continue the existing strategy though with a sharper focus on carrying though the reforms.
On leaving Bandrowczak says: “Over the past several years, we have taken important steps to strengthen the company, and I am proud of the resilience of our team. I appreciate the support of the Board and leadership team during my tenure and wish the company well in its next chapter. I’m confident Louie will lead the company with the focus and execution discipline this moment requires.”
“Louie brings a strong combination of operational discipline, strategic insight, and deep familiarity with Xerox,” board chairman Scott Letier, “Throughout his time with the company, he has played a central role in advancing our strategy, strengthening our operating model, and driving enterprise-wide transformation. The board is confident that Louie’s leadership and focus on execution will position Xerox well as we continue to build momentum and deliver on our strategic and financial objectives.”
Delivery will need to be rapid as the share price has fallen 80% since the start of 2025 from close to $10 to little more than $1.30 now. Sales rose during the second half of the year thanks in particular to the Lexmark acquisition, while sales in ongoing operations were down. The lack of competitive production print presses, now addressed, meant sales in this sector have continued to fall.
If Xerox were to continue to stumble, Fujifilm has been tipped as a leading contender to buy the business, while Kyocera and Brother are others which are expanding and have the financial muscle to invest. In a Lex column commenting on a joint venture deal with alternative asset management firm TPG to raising $450 million to manage certain Xerox assets, the FT suggested that Chapter 11 might help.
