In February, Fuji Xerox - soon to change its name to Fujifilm Business Innovations - completed its $140 million acquisition of IT and print facility provider CSG. As CSG is integrated into FXA, from May 25 on, a 'small number' of positions will be eliminated.
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| CSG has almost 10,000 small-to-medium business customers across ANZ |
In February, we annound the completion of Fuji Xerox's acquisition of CSG. Australian Reseller News now reports that the company announced internally on 25 May, that it was undertaking its planned business integration process as part of the CSG and CodeBlue acquisitions. The integration is expected to help deliver on the “businesses strategic move into digital services and complementary IT services and solutions as the traditional print business matures,” according to a spokesperson for the company.
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| CSG Managing Director Ken Sugiyama |
A spokesman continued: “As a result, a small number of executive roles have been eliminated.” This follows the announcement of approximately 100 job losses at Fuji Xerox New Zealand as a result of an 85% downturn in print volumes due to Covid-19 lockdowns.
Commentary:
Job losses are a common factor in business acquisitions, as duplication of roles becomes apparent. Combined with IT automation and lean running policies, middle management is the most vulnerable area. Accelerated by the Covid pandemic, it was inevitable that CSG, under its new ownership, would need to shed positions.
As Fuji Xerox extricates itself from the toxic relationship with Xerox Corp; the use of the Xerox name will lapse and the company will become Fujifilm Business Innovation (FBI). By adding CSG - a company borne out of the defunct Xerox Business Centre chain - the new company will be in a strong position in both SME business print, IT and production print with devices such as the Iridesse and Color 1000. CSG was once a large Canon reseller; it's fair to assume that its MFP and network printer business will become FBI-centric.
How much document printing will return when businesses get back to normal is the unanswered question; if monthly 'click' volumes do not return to their dizzy heights pre-coronavirus, there may be the need for further rationalisation in the sector.
