Lexmark slashing 1,700 jobs, stop making inkjets

AP

(AP) 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 Inc., 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 Inc., 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.

[foo8259]

I got tired of my Lexmark feeding the paper in crooked every-time I tried to print a page -- it only has one small paper feed wheel on the right side so it's no wonder. I finally fixed it with a hammer and bought another brand. Ill never buy anything again from Lexmark, good riddance!

[mollydtt]

I had to get rid of my perfectly good Lexmark all-in-one printer, because Lexmark wouldn't issue a new driver to use with Vista. I bought an HP printer, which I didn't like nearly as much, but I could use it with Vista and now use it with Windows 7.
Lexmark just didn't care about the customers. I vowed to never again buy Lexmark, because I couldn't trust them.

[crashdummy38]

Sorry to hear this, yes, their cartridges are overpriced but they have the best customer service in the industry, bar none.

[john92021]

has nothing to do with their printers being crappy. CEO probably takes home as much as 1700 employees.

[jeannutson]

This is a typical example of how the combination of the global economic crisis and the fast growing trend in technology is rapidly requiring adjustments in the operations of companies requiring inevitable job cuts and even closures .

[sallychicago]

They have one of the highest priced inkjet cartridges and when people look for inkjet printers, price of cartridges is considered. These print companys can give away the printers, but we the consumer will pay many times for the ink cartridges. And the companies won't allow generics to be used in their printers.

[taylorsucram]

Yea, I threw my Lexmark away. And their ink cartridges have a chip inside that prevents you from refilling !

[Martha12345]

Another surprise in our 3rd "Recovery Summer".