Xerox splitting into two as it grapples with changing market

New York

XEROX Corp is rewinding the clock, splitting off a services business it acquired a little more than five years ago - the latest tech giant taking drastic action to cope with a rapidly changing marketplace.

By year-end, Xerox said on Friday in a statement, it will separate into two publicly traded entities: a US$11 billion document technology company based around the namesake copier and scanner hardware; and a US$7 billion provider of services to government and industries such as health care and transportation.

Investor Carl Icahn, who holds more than 8 per cent of the company and has said he would push for operational changes,…