The manufacturer is also launching a $250m (£182m) corporate venture capital fund to invest in start-ups and growing businesses.
Sales for full-year 2022 were down 22.5% at $7.02bn, while adjusted operating profits fell from $1.19bn to $464m.
The creation of the three distinct businesses is expected to be completed by 2022.
CEO John Visentin said he “couldn’t be prouder” of the way the Xerox team had pulled together during a time of adversity.
“We put our strategy to the test in 2020, delivering positive earnings per share and free cash flow, while returning capital to shareholders and continuing to invest in our future. The team’s discipline allowed us to turn on a dime, tightly controlling expenses while steadfastly supporting clients,” he stated.
“Though the impact of the pandemic continues in 2021, we expect to return to growth this year as we increase the breadth of offerings and reach new customers in existing and new businesses.”
Equipment revenue fell in all categories bar entry-level black and white printers.
High-end colour installs were down 42%, with mid-range colour falling by 26%.
“In the fourth quarter, the production portfolio had major updates across all segments, addressing professional print shops need to extend their business to new customers and enhance productivity,” Visentin said.
“In 2021, we are continuing to innovate in this portfolio, adding workflow automation, machine learning, artificial intelligence and remote services to make our clients and employees more efficient, while maintaining security. For example, machine learning will enable devices to recognize individual patterns and make timesaving recommendations.”
The group said it continued to look at possible acquisitions.
“We continue to assess our M&A pipeline, including both potential tuck-in acquisitions and strategic transactions. Due to refinancing activities, our liquidity remains strong as there are no bond maturities due in 2021, providing additional financial flexibility.” Xerox said.
Xerox installed its first Element X 3D liquid metal printer at the end of last year, which was described as ‘an important milestone” for the emerging business.
Visentin said the business was “positioned to return to growth” and expand into new markets in 2021, despite the ongoing Covid issues.
