Lexmark International to axe 1,700 jobs, shut Philippines inkjet supplies facility
28 Aug 2012
Lexmark International Inc plans to eliminate 1,700 jobs, shut a plant in the Philippines, and explore a sale of its inkjet technology, as part of the US printer manufacturer's plan to restructure the company to boost profitability.
The Lexington, Kentucky-based company that makes printing and imaging products, including laser and inkjet printers, will no longer manufacture business inkjet hardware, and reduce its workforce by around 13 per cent.
The restructuring moves are expected to bring in savings of $95 million annually, but Lexmark said that it will continue to provide service, support and aftermarket supplies for its inkjet installed base.
"Today's announcement represents difficult decisions, which are necessary to drive improved profitability and significant savings," said Paul Rooke, Lexmark chairman and CEO.
"Our investments are focused on higher value imaging and software solutions, and we believe the synergies between imaging and the emerging software elements of our business will continue to drive growth across the organization,'' he added.
The restructuring is expected to result in reductions primarily in inkjet-related infrastructure as well as positions in research and development, supply chain and other support functions, including 1,100 manufacturing jobs.
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