The CEO of Xerox has stepped down amid a significant decline. This drop has sent the company’s stock tumbling over 90%, marking the end of a challenging period filled with layoffs, acquisitions, and escalating losses.
Steve Bandrowczak, who received a total of $14.3 million in compensation for 2024, concluded his role as CEO on Monday. His leadership began in August 2022, just as the company faced one of its largest shareholder losses in recent times.
Taking over as CEO is Louis Pastor, who will step into the role immediately.
In a statement, Bandrowczak expressed pride in the resilience of the team, mentioning, “Over the past few years, we have taken significant steps to strengthen our company.” He thanked the board and management for their support and wished the company success going forward.
Xerox’s stock price dropped from the mid-teens to approximately $1.27 by the time he left office. This dramatic fall erased billions in market value and relegated the once-prominent office technology company to trading like a penny stock.
On the afternoon following Bandrowczak’s resignation, Xerox shares fell more than 9%. This decline follows the company’s aggressive push for “reinvention,” which relied heavily on acquisitions to reshape its business and cut costs.
Part of this drive included a plan for a 15% workforce reduction aimed at slashing expenses. However, these efforts did not successfully counter the downturn in Xerox’s printing sector, leading to doubts about the restructuring’s effectiveness.
“While macro headwinds remain, we are cautiously optimistic that economic trends are starting to improve,” Bandrowczak stated during the announcement of the company’s financial results for the fourth quarter of 2025. However, the results painted a far grimmer picture.
Xerox reported a full-year revenue of $7.02 billion for 2025, which appears better on paper but actually reflects an 8% decline when acquisitions are excluded.
The company’s profitability took a hit, showing an adjusted loss of $0.60 per share for the year.
Moreover, cash generation suffered, with free cash flow decreasing by over $300 million year-over-year to a mere $133 million. Even in the fourth quarter, despite a 26% increase in sales due to acquisitions, underlying sales fell by 9% when compared on a comparable basis, underscoring ongoing struggles in the core business.
Xerox’s financial health also worsened quickly, with debt rising to around $4 billion, leaving the company heavily leveraged alongside growing losses.
The Post has sought comment from Xerox.
