Xerox, a leading document technology company, has announced its plans to break up into two publicly-traded companies. The move will see Xerox splitting itself into a new corporate entity that will focus on document technology and a separate one for its outsourcing business.

The decision to split came after Xerox reported weaker-than-expected profits in the fourth quarter of 2015. The company has struggled with declining demand for printers and copiers as more businesses go digital. The breakup is seen as a strategic move to help the company better compete in a rapidly changing marketplace.

The new document technology company will be called Xerox and will offer innovative document management services and solutions, including copiers, printers, and workflow automation. It will continue to focus on expanding its presence in key markets such as healthcare, financial services, and education. The new outsourcing company, which will be named Conduent, will offer business processing services such as customer care, transaction processing, and workflow automation.

Xerox Chairman and CEO Ursula Burns believes that the separation will better position both companies for future success. By creating two distinct public companies with different business models and growth trajectories, Xerox will be able to allocate resources to each division to increase shareholder value.

The company expects the separation to be completed by the end of 2016. The move will not result in any job losses, and both companies will remain headquartered in Norwalk, Connecticut.

In conclusion, Xerox’s decision to split into two publicly-traded companies is a strategic move to help the company better compete in a rapidly-changing marketplace. The new document technology company, Xerox, will focus on expanding its presence in key markets such as healthcare, financial services, and education, while the new outsourcing company, Conduent, will offer business processing services. The move is expected to be completed by the end of 2016, and Xerox has assured that it will result in no job losses.