Xerox is separating into two independent publicly traded companies.
The planned breakup follows pressure from activist investor Carl Icahn.
Shares jumped more than 3 percent in Friday premarket trading.
Xerox said that the document technology company will handle document management and document outsourcing. The other is a business process outsourcer that will help companies with automating and simplifying business processes.
The names of the two companies have yet to be determined.
Under the breakup, Icahn will get to name three of the nine directors on the business process outsourcing company's board.
Xerox Corp. also announced a three-year plan to save $2.4 billion across all segments. It anticipates $700 million in annual savings in 2016.
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