Lexmark to Cut 1,700 Jobs, Stop Making Inkjet Printers

LEXINGTON, Ky. -- Lexmark (LXK) is cutting 1,700 jobs, or almost 13 percent of its workforce, and says it will stop making inkjet printers as part of a drive to cut costs as it deals with shrinking sales of inkjets.

The printer and software company said Tuesday that it will close its inkjet supply plant in the Philippines by the end of 2015. It is also putting its inkjet technology up for sale.

Lexmark had about 13,300 employees as of Dec. 31. Lexmark has been shifting its focus from consumer inkjet printers, focusing on higher-profit laser printers and supplies for businesses and software services.

It has made a series of acquisitions, including Luxembourg's BDGB Enterprise for about $148 million. This purchase included BDGB's U.S. subsidiary Brainware, which provides data capture software to businesses.

The job cuts include about 1,100 manufacturing jobs. Lexmark says the moves will save it $85 million in 2013 and $95 million a year by 2015. It expects to book costs of $160 million over three years for the restructuring.

Lexmark International, based in Lexington, Ky., says it will continue to provide support and supplies for its inkjet printers still in use.

The restructuring is the second in less than a year for Lexmark, which said in January it would cut 625 jobs.

Lexmark in July reported second-quarter results that fell short of Wall Street expectations as the economic crisis in Europe pulled down demand.

Lexmark's stock closed Friday at $19.01 per share. It has fallen from over $73 in 2006 and has sunk as low as $16.10 in the past year.


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rmrmsix

Hey the recession is over.. The Obama said so!!!

August 29 2012 at 8:39 AM Report abuse rate up rate down Reply
benplhrs743

I worked there in the early 90's they started making strategic moves overseas and the quality went to he!!
the ceo's were only out for short term gains to fattlen their bonuses like when Marvin M=== fired 800 people and gave himself a 800000 dollar bonus just after, this company now should be sold management fired and start from scratch. but thats just an honest opinion

August 29 2012 at 2:27 AM Report abuse rate up rate down Reply
benplhrs743

I worked there in the early 90's they started making strategic moves overseas and the quality went to he!!
the ceo's were only out for short term gains to fattlen their bonuses like when Mann fired 800 people and gave himself a 800000 dollar bonus just after, this company now should be sold management fired and start from scratch. but thats just an honest opinion

August 29 2012 at 2:26 AM Report abuse rate up rate down Reply
suzukiryder299

Our economy is in shambles! I almost fear it is going to get worse before it gets better!

Check this out if you need a bail out!
www.dailycashfreedom.us

August 29 2012 at 12:53 AM Report abuse rate up rate down Reply
suzukiryder299

Our economy is in shambles! I almost fear it is going to get worse before it gets better!

Check this out if you need a bail out!
www.dailycashfreedom.us

August 29 2012 at 12:53 AM Report abuse rate up rate down Reply
byrdman53

Mine quit on me before it was 2 years old, bought a new Epson workforce series, bad news complicated, poor print quality, very slow. took it back after 30 days, went back to hp they last at least 3 years. Ink is too costly for all of them, beter to take the photo disk to be processed at the drug store much cheaper.

August 28 2012 at 10:14 PM Report abuse rate up rate down Reply
byrdman53

Mine quit on me before it was 2 years old, bought a new Epson workforce series, bad news complicated, poor print quality, very slow. took it back after 30 days, went back to hp they last at least 3 years. Ink is too costly for all of them, beter to take the photo disk to be processed at the drug store much cheaper.

August 28 2012 at 10:14 PM Report abuse rate up rate down Reply
Joey

Huh ? What are they going to make instead ? Laser only ? Wait a minute, were they bought up by Bain Capital so they could be stripped of assets and take a Chapter 11 Bankruptcy ??? I don't get this story.

August 28 2012 at 9:56 PM Report abuse +1 rate up rate down Reply
AL CONFER

The costs of ink is what has made many printer companys go under. Kodak came out with printers that used ink that was far cheaper and Kodak is doing well in the printer business. Lower ink costs and sales will go up.

August 28 2012 at 9:04 PM Report abuse +1 rate up rate down Reply
2 replies to AL CONFER's comment
JOSEPH

I take my Lexmark ink-jet cartridges to Walgreen's and get them refilled for $9.99.

August 29 2012 at 7:26 AM Report abuse +1 rate up rate down Reply
JOSEPH

I take my Lexmark ink-jet cartridges to Wallgreen's and have them refilled for $9.99.

August 29 2012 at 7:26 AM Report abuse rate up rate down Reply
AL CONFER

The costs of ink is what has made many printer companys go under. Kodak came out with printers that used ink that was far cheaper and Kodak is doing well in the printer business. Lower ink costs and sales will go up.

August 28 2012 at 9:04 PM Report abuse rate up rate down Reply