NO LOVE AT CONDUENT (UPDATED)

 Am I Next? Conduent Layoffs and Restructuring

UPDATE: AUGUST 15, 2018 ADDITIONAL CONDUENT LAYOFFS

Florham Park, New Jersey-based Conduent has announced that it will be laying off 410 employees and closing its  Colorado Springs, Colorado call center as part of its continuing restructuring and cost containment activities.  

In its most recent annual report (2017), Conduent noted, "We continue to execute on our strategic transformation program to deliver cost savings through infrastructure optimization, labor productivity, and automation initiatives, restructuring of unprofitable contracts and other efficiencies. This transformation program has and will enable us to better capitalize on our differentiated service offerings,  industry  expertise, and global delivery excellence and position us for long-term shareholder value creation."

In 2017, we closed more than 120 facilities and plan to close up to 100 additional locations. We overhauled our IT structure end-to-end, consolidating labor, partners, data centers and networks. We also launched a multi-year modernization program that will result in greater
efficiency and best-in-class systems over time."

Original Post...

Conduent, the Xerox spin-off of its Business Services division, has announced that it would be laying off 267 workers. Sarah Amoriell, Conduent’s human resources spokesperson, claims that “the positions are being permanently eliminated due to a change in business conditions.” Most of the positions involve customer-facing representatives known as “customer care assistants.”

Conduent mainly provides outsourced back offices that manage transaction-intensive processing like digital payments, claims processing, benefits administration, automated tolling along with analytics, and automation of other functions to both government and commercial customers. 

Unfortunately, due to management and growth issues, many of Conduent’s systems were stand-alone platforms which were never integrated and managed as a single standardized entity. This opportunity provides for a fast turnaround and a much stronger company. 

Like him or not, this is the type of turnaround driven by activist investor Carl Icahn who has a major shareholder position in the company and three board seats. You can bet Icahn’s team is pushing the divestiture of unprofitable operations,cost-cutting, and restructuring to reverse the effects of the mismanagement of previous contracts, reduced revenues, and abysmal margins. 

Conduent should not be confused with the other former Xerox company, now known as Fuji-Xerox, which offers document-based solutions and on-demand printing. 

Are you asking yourself, Am I Next?