ROCHESTER, N.Y. — Xerox officials announced late Tuesday night that Jeff Jacobson is out as CEO, and the pending deal to merge part of the business with Fujifilm will either be restructured, or dumped entirely.

Carl Icahn and Darwin Deason both filed suit to block Xerox's proposed merger. 

Xerox's agreement with the two means a major change in the chain of command. 

Jacobson plans to resign as CEO, along with six members of the Board of Directors.

"In the long-term, Xerox will need to increase its revenues and stay profitable to keep the Webster operation healthy. In the short-term, this is a better deal for our area because you won't see a combination with Fuji. Combining with Fuji means the Rochester area operation will be a small part of a large global enterprise," said George Conboy, chairman of Brighton Securities.

John Visentin, previously a consultant for Icahn Capital, will take over as the new CEO. 

Icahn said he believes the company is now in a better position to "restructure its relationship with Fujifilm."