For decades, Xerox was the safe choice – reliable devices, predictable service. A company built around print. But today, something has shifted, and many businesses are starting to feel it – not because they’re following Xerox’s earnings calls or strategy updates, but because the experience on the ground is changing. Many of the customers we work with across Ontario are noticing these shifts first-hand.
- Service is slower
- Support seems less consistent
- Confidence in the future feels unclear
If you’re relying on Xerox today, especially heading into a refresh cycle, there’s a critical question to ask: Are you about to commit to a partner that is moving away from the very thing your business depends on?
Xerox Isn’t the Same Company It Was
Xerox is in the middle of a major transformation. Publicly, this is framed as reinvention, but the underlying data tells a more concerning story for customers.
At its core, Xerox’s print business—the foundation it was built on—is shrinking:
- Print revenue has declined significantly, with core segments down as much as 7–9% year-over-year¹
- Post-sale print revenue (service, supplies—what keeps your environment running) has dropped over 11%²
- Overall company revenue has declined nearly 10% year-over-year³
Xerox has also unwound its long-standing Fuji Xerox partnership, historically a key part of how the company developed and manufactured its print technology. For decades, this relationship played a central role in product innovation and delivery. Its separation represents a fundamental shift in how Xerox brings print technology to market, introducing new complexity and raising questions about long-term product consistency and roadmap clarity.
- Xerox ended its 57-year Fuji Xerox joint venture in 2020, selling its stake for $2.3B¹¹
- The partnership had been central to R&D, manufacturing, and product innovation¹²
- Its separation represents a fundamental shift in how Xerox develops print technology¹¹
- Xerox must now restructure or replace that model to support its hardware roadmap¹³
- Fuji entered the North American market in 2024, now competing against Xerox
For the first time in decades, Xerox is facing direct competition in North America from the company that once powered much of its innovation. For customers, this isn’t just a structural change. It directly impacts how future devices are designed, supported, and evolve over time.
At the same time, Xerox is actively repositioning itself:
- Shifting toward IT services and software
- Growing new business lines through acquisitions rather than print
- Even stepping away from parts of its traditional print manufacturing portfolio⁴
Print is no longer the growth engine—or the primary focus—of the business. And with Fuji no longer a partner, the model that built Xerox’s products is gone. The products customers have relied on for years are going to change.
When Print Declines, Canadian Customers Feel It
For businesses, this isn’t about strategy. It’s about impact. When a company’s core business declines, and cost pressures increase, it doesn’t stay contained at the corporate level – it shows up in the areas you rely on most.
1. Service Becomes a Cost Centre
As companies restructure and cut costs, service is often one of the first areas affected. Xerox has:
- Reduced its workforce by as much as 15%⁵
- Undertaken significant restructuring efforts
- Invested heavily in cost reduction initiatives
These are not small adjustments—they are signals of a company under pressure, and in real terms, that can translate to:
- Longer response times
- Fewer experienced technicians
- Increased reliance on offshore support
- More reactive, less proactive service
If you’ve already experienced delays or inconsistencies, you’re not alone. Many of our clients across the Toronto and Ottawa regions are already seeing this firsthand—reporting response times shifting from hours to days, while service costs continue to rise without a corresponding increase in value.
2. Financial Pressure Limits Investment
Beyond restructuring, Xerox is facing growing financial strain:
- A $1.2 billion pre-tax loss reported in a recent period⁶
- Free cash flow declining by over $300 million⁵
- Debt levels approaching $4 billion⁵
- High-interest borrowing at rates exceeding 10%⁷
- A declining credit profile – from CCC+ to CCC – raising concerns about long-term financial stability.9
These aren’t just financial metrics—they have real-world implications. When a company is managing debt and declining performance, it has less capacity to:
- Invest in new product innovation
- Improve service infrastructure
- Maintain strong support resources
- Advance print-specific technology
For organizations where print remains critical to day-to-day operations, this level of uncertainty introduces real operational risk. It also raises some important questions:
Will Xerox still be around?
3. The Market Has Already Lost Confidence
Perhaps the clearest signal comes from the market itself. Xerox’s stock has declined over 90% from its historical peak⁸, and been described as trading “like a penny stock” in recent reporting⁵
Adding to this uncertainty, Xerox’s CEO recently stepped down amid this period of decline, reinforcing questions about leadership stability and future direction.10
This level of decline reflects more than short-term volatility. It reflects a fundamental loss of confidence in the company’s future direction, and while customers don’t operate on stock prices, this matters—because it reinforces the broader trend: The business is under pressure, and the future is uncertain.
The Risk Most Businesses Don’t See
Most organizations renew their print environment every 3–5 years, and many default to the incumbent vendor because it feels like the lowest-risk option. But in this case, that assumption may no longer be true, because renewing with Xerox today means committing to:
- A company whose core print business is declining
- A strategy that is shifting away from print
- A cost structure that is being aggressively reduced
- A financial position that limits future investment
- A product portfolio that is evolving—and potentially shrinking
In other words, you’re not just renewing a contract – you’re committing to a new, and largely unknown direction. And perhaps the most difficult question: will the current trajectory support the kind of long-term stability your business is committing to over the next 3–5 years? Will Xerox still be around?
Why “Do Nothing” Is Now the Risky Decision
For years, staying with Xerox meant stability. Today, staying may mean accepting:
- Continued service degradation
- Increasing uncertainty around support
- Reduced innovation in print
- Misalignment over the life of your next contract
- Unpredictable or increasing costs without corresponding service improvements
The biggest risk isn’t switching – it’s assuming nothing has changed.
The Smart Approach: Reassess Before You Renew
Instead of defaulting to renewal, ask: “Is this still the right partner for where we’re going?”
And more importantly: “What risks are we locking ourselves into if we don’t evaluate alternatives?”
Digital Business Systems Can Help
Digital Business Systems understands Xerox environments firsthand. As a Canadian managed print services expert headquartered in the Toronto area —and a Xerox partner since 2003—we’ve spent decades working within and alongside the Xerox ecosystem. Our team has even served at the executive level, representing Canadian partner agencies.
Today, we support clients across multi-vendor print environments, including HP, Fujitsu, Brother, Konica Minolta, and Xerox—giving us a uniquely objective perspective on what’s working, what’s changing, and where risks are emerging.
Take Control with a Digital Business Systems Assessment
Before committing to another 3–5 year agreement, a print assessment with Digital Business Systems gives you clarity. This is not about pushing you away from Xerox—it’s about helping you see the full picture.
A DBS assessment will:
- Build a strategy aligned to your business—not a vendor in transition
- Analyze your current Xerox and/or multivendor print environment—devices, service performance, and costs
- Identify where restructuring and cost pressures may already be impacting your operations
- Highlight risks tied to product roadmap uncertainty and long-term support
- Compare alternatives from manufacturers that are actively investing in print
The Bottom Line
Xerox hasn’t disappeared, but it has changed—significantly. Its print business is shrinking. Its focus is shifting. Its financial position is under pressure. And the market has already signaled declining confidence.
For organizations across Ontario—where print still plays a critical role in day-to-day operations—this shift is more than strategic. It’s operational.
So, before you renew, ask yourself: Are you choosing based on what Xerox used to be—or what it is becoming?
Your next refresh is an opportunity—not just to replace devices, but to make a smart, strategic decision about how print supports your business moving forward. And in a world where reliability, responsiveness, and clarity matter more than ever – that decision is worth getting right. Contact us to get started.
Footnotes
1. Xerox Q1 2025 results show print revenue decline https://investors.xerox.com/news-releases/news-release-details/xerox-releases-first-quarter-results
2. Xerox earnings analysis (Panabee) https://www.panabee.com/news/xerox-q1-quarterly-earnings-2025
3. Xerox CEO exit amid massive decline (New York Post) https://nypost.com/2026/03/31/business/xerox-ceo-who-oversaw-massive-decline-steps-down-after-earning-14-3m
4. Xerox pivot toward IT solutions (Investing.com) https://www.investing.com/news/company-news/xerox-q1-2025-slides-revenue-declines-as-company-pivots-toward-it-solutions-93CH-4016164
5. Xerox stock collapse and restructuring details (New York Post) https://nypost.com/2026/03/31/business/xerox-ceo-who-oversaw-massive-decline-steps-down-after-earning-14-3m
6. Xerox reports annual loss (CT Insider) https://www.ctinsider.com/business/article/xerox-holdings-ceo-louie-pastor-norwalk-ct-22159309.php
7. Xerox debt financing details (Panabee) https://www.panabee.com/news/xerox-q1-quarterly-earnings-2025
8. Xerox stock collapse and valuation decline (New York Post) https://nypost.com/2026/03/31/business/xerox-ceo-who-oversaw-massive-decline-steps-down-after-earning-14-3m
9. Xerox Corp. Secured Debt Ratings Lowered, Recovery Ratings Revised Following Joint-Venture Financing (S&P Global) https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3524238
10. Xerox CEO who oversaw company’s stock plummet 90% steps down effective immediately(New York Post) https://nypost.com/2026/03/31/business/xerox-ceo-who-oversaw-massive-decline-steps-down-after-earning-14-3m
11. Reuters – Fujifilm to buy Xerox stake in Fuji Xerox for $2.3 billion
https://www.reuters.com/article/us-fujifilm-xerox-idUSKBN20C0FB
12. Fujifilm Business Innovation – Company history (Fuji Xerox role in R&D/manufacturing)
https://www.fujifilm.com/fbglobal/en/about/history
13. Keypoint Intelligence – Xerox transformation and strategy analysis
https://keypointintelligence.com/read/xerox-turns-the-page-on-the-steve-bandrowczak-era
