Xerox chooses CEO for post-split BPO company
Xerox has named Ashok Vemuri the chief executive officer of the planned Business Process Outsourcing (BPO) company after Xerox splits its services business and legacy hardware operations into two separate, publicly-traded companies.
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Vemuri was most recently the CEO of IGate until it was sold to outsourcing company Capgemini in 2015. Before IGate he spent 14 years with Indian outsourcing giant Infosys.
Xerox first announced plans to break up the company in January following pressure from activist investor Carl Icahn, who acquired an eight-percent stake in Xerox at the end of last year. Current Xerox CEO Ursula Burns was recently named chairman of the board of the company's post-split Document Technology company.
If all goes as planned, Xerox said the separation will create an $11 billion document technology company with 40,000 employees, and a $7 billion BPO company.
However, the transition has forced the legacy tech vendor to prune its workforce, and Burns warned of more layoffs to come when she spoke at the company's annual shareholder meeting last month.
"We have and will continue to eliminate jobs," she said. "We do this to position the companies well."
The spinoff puts Xerox alongside a bevy of other legacy corporations that have succumbed to pressure to split up or pare their operations. Icahn notoriously led the charge to break eBay and PayPal into two companies. That split was finalized last July.