Lexmark Restructuring – Quits Inkjet Business & Cuts 1,700 Jobs
Lexmark today announced some major restructuring plans that call for the sale of the company’s inkjet technology, the elimination of 1,700 positions and to shut an inkjet factory down in the Philippines. Lexmark hopes that the changes will result in annualized savings of $95 million once fully implemented. Lexmark will continue to provide service, support and aftermarket supplies for its inkjet installed base. Separately, Lexmark said today it will buy back an additional $100 million in its own shares, and that the board has authorized a potential $251 million in future repurchases.
“Today’s announcement represents difficult decisions, which are necessary to drive improved profitability and significant savings,” said Paul Rooke, Lexmark chairman and chief executive officer. “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.
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