Xerox 2008 Annual Report Download - page 6

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4
2008 bonuses have been scaled back substantially and people
on bonus plans will receive no salary increases this year.
Expenses like training and travel have been significantly cut
back. External hiring has to be approved by me personally.
We’ve accelerated the consolidation of manufacturing
facilities around the world, stopped the production of
products made in very low volume, and consolidated
operations wherever we can. We’ve realigned our support
operations – including human resources, training, finance
and marketing – to achieve better synergy at lower cost.
We’ve streamlined product development and engineering by
combining two product development organizations into one.
So we are taking a long list of actions aimed at getting our
expenses aligned with the realities of faltering economies in
just about every corner of the globe. Our investments over
the years in Lean Six Sigma have given us a set of tools and
processes that simplify and reduce the cost of managing our
global operations. For us, it’s not an event, but a way of life.
The management team I’m privileged to lead is a seasoned
group that knows all about belt-tightening and is eager to
deliver the best possible shareholder value that conditions
allow. You place a lot of trust in us. It’s something we take
very seriously.
Emerging with a Full Head of Steam
At the same time, we are not mortgaging our future. We are
continuing to invest for growth and we are continuing to stick
to the fundamentals – starting with listening to our customers.
One of the things I’m proudest of is the customer-centric
culture we’ve developed at Xerox. We have a proven track
record that demonstrates that our customers increasingly see
us not as a vendor, but as a partner.
859
978
1,210 1,135
985*
230*
’04 ’05 ’06 ’07 ’08
Net income
(millions)
Post-sale revenue
(included in total revenue – millions)
11,242 11,182 11,438
12,475 12,929
’04 ’05 ’06 ’07 ’08
Color revenue
(included in total revenue – millions)
4,188
4,928
5,578
6,356 6,669
’04 ’05 ’06 ’07 ’08
* See Page 7 for the reconciliation of the difference between this financial measure that is not in
compliance with Generally Accepted Accounting Principles (GAAP) and the most directly
comparable financial measure calculated in accordance with GAAP.