XRX Xerox Holdings Corporation

Xerox Corp., in the midst of separating itself into two stand alone companies, said Friday that Chairman and Chief Executive Ursula Burns will serve as chairman of the document technology firm to be created in the split.

Xerox said in January that it would split into two companies: one with some 40,000 workers that sells office machines and one with roughly 100,000 workers that provides back-office services.

Ms. Burns will continue in her current roles until the separation. The company didn't say who would become chief executive of the document technology business, nor did it name the leadership of the broader outsourcing business.

"Ursula's deep industry experience and relationships, along with her proven leadership skills, will be valuable assets for the document technology company and will help ensure a smooth transition to a new management team," said Ann Reese, Xerox's lead independent director.

Ms. Burns said Friday that a search to fill leadership positions is under way.

Speaking at the company's annual meeting in Norwalk, Conn., she said the company kept management decisions in the back seat earlier this year while the board focused on how to separate the two segments.

"My decision-making process has been grounded in making the best decision for Xerox and for me, personally, in that order," Ms. Burns said.

The company also warned of more layoffs in the coming months.

"We have and will continue to eliminate jobs," she said. "We do this to position the companies well."

In April, the company said its first-quarter profit sank 85% and executives cautioned investors that preparing the company to break up would cost more than expected this year. Xerox plans to cut about $700 million in annual costs this year to prepare for the split. Xerox cut about 8,300 jobs during the first three months of the year, leaving the company with about 135,000 workers around the world.

The company said Friday the separation was on track to be completed by the end of the year.

In January, Ms. Burns defended the decision to undo her signature acquisition—the 2010 purchase of Affiliated Computer Services Inc. for about $6 billion, Xerox's largest ever takeover—by splitting the 109-year-old company in two. Left unanswered until Friday was what role, if any, she would play in the future companies.

Ms. Burns has served as CEO since 2009 and as chairman since 2010. Ms. Burns, who first joined Xerox in 1980 as an engineering intern, spent decades climbing the ranks at Xerox and became the first African-American woman to lead a Fortune 500 company. She entered the chief executive role during the recession in 2009 and faced the challenge of cutting costs fast enough to return the company to profitability.

Both units at Xerox have been struggling to grow. Revenue from the company's services business fell 3% to $10.25 billion in 2015. In the legacy hardware division, sales slid 12% to $7.36 billion, its steepest decline since 2009.

The company's stock, which has fallen 2% in the past three months, rose 1.2% to $9.16 in morning trading.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

May 20, 2016 11:05 ET (15:05 GMT)

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