| BUSINESSWEEK ONLINE : MARCH 5, 2001 ISSUE | |||||
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| COVER STORY
Xerox' History: The Highs and Lows Once synonymous with corporate success and technological innovation, Xerox is now struggling with losses and a leaden stock-not to mention a reputation for fumbling high-tech opportunities 1938 Chester Carlson produces first xerographic image in his lab in Astoria, Queens. 1959 Launches the Xerox 914, the first automatic, plain-paper office copier--which becomes the top-selling industrial product of all time. 1961 Shares list on the New York Stock Exchange. Xerox becomes one of the great growth stocks of the go-go era. 1970 Opens Palo Alto Research Center, birthplace of the personal computer, laser printer, and Ethernet; much of the technology goes unexploited by Xerox. 1982 Visionary leader David T. Kearns becomes CEO, facing a dire competitive threat from Japanese rivals pioneering low-cost copiers. 1983 Begins a disastrous foray into financial services with purchase of Crum & Forster insurance group; later buys brokerage and life-insurance companies. 1990 Launches line of digital presses, creating lucrative new market; Paul A. Allaire named chief executive. 1993 Decides to quit financial services; announces first major layoffs, reducing workforce by 10%. 1995 Introduces digital copier, opening vast new market and creating a $3 billion-a-year business. But success blinds it to threat of desktop printers. 1997 Rick Thoman leaves IBM to become president and COO. 1998 Sells Crum & Forster at huge loss; slashes an additional 9,000 jobs, taking $1 billion write-off. 1999 Shares hit peak of $64 as Thoman is named CEO. But quick attempts to overhaul hidebound culture backfire. Earnings and shares plummet. U.S. inkjet printer sales hit $5.2 billion, with 50% controlled by Hewlett-Packard. Xerox logs 2% share. MARCH, 2000 Announces 5,200 more layoffs. MAY, 2000 Allaire ousts Thoman and returns as CEO. DECEMBER, 2000 Reports largest quarterly loss under Allaire. Stock hits $7. JANUARY, 2001 Announces 4,000 layoffs. Company again forced to deny it has plans to file for Chapter 11 bankruptcy. Leveraged buyout firms begin serious discussions for a minority stake in Xerox. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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 RELATED ITEMS Xerox: The Downfall COVER IMAGE: Xerox: The Downfall TABLE: Xerox' History: The Highs and Lows CHART: Xerox Lost Its Hold On Copiers...And Flubbed Desktop Printers... TABLE: Xerox' Dire Finances Commentary: Shhh! You'll Wake the Board TABLE: Where Were They? INTERACT E-Mail to Business Week Online |
