August 28, 2012
Bloomberg Businessweek reports that Lexmark will cease to manufacture inkjet printers, with plans to close its inkjet supply plant in the Philippines “by the end of 2015” and sell its inkjet technology; although the company states that it will continue to provide support and supplies for its existing inkjet printers.
In addition, Lexmark will cut 1,700 jobs – around 13 percent of its 13,300 workforce, including 1,100 manufacturing jobs as part of the OEM’s restructuring following disappointing financial results.
According to Lexmark, the cuts are expected to save $85 million (€67.7 million) in 2013 and $95 million (€75.7 million) by 2015, although it “expects to book costs of $160 million (€127.5 million) over three years” for restructuring the company, with $110 million (€87.6 million) incurred in 2012, $30 million (€24 million) affecting 2013 and $20 million (€16 million) impacting 2014 and 2015.
The Washington Post stated that Lexmark has increasingly been focusing on “higher-profit laser printers and supplies for businesses and software” after struggling to sell its inkjet printers.
Paul Rooke, CEO and Chairman of Lexmark commented on technology website The Next Web: “Today’s announcement represents difficult decisions, which are necessary to drive improved profitability and significant savings.
“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.”
Categories : World Focus