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 manages transaction-intensive processing like digital payments, claims processing, benefit 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 driving 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, that offers document-based solutions and on-demand printing.