Lexmark to exit inkjet printer business

Vendor claims move would generate annual savings of $95 million by 2015, but at a cost of 1,700 jobs.

Exit doors

Printer vendor Lexmark is to exit the inkjet market, resulting in the loss of around 1,700 jobs.

Lexmark confirmed the product strategy change in an investor statement earlier today and claimed the move would generate $95 million in annual savings from 2015.

These savings would be generated by scrapping the research, development and manufacture of the company's inkjet products, as well as the closure of its factory in the Philippines.

"These actions are expected to generate $85 million savings in 2013, increasing to ongoing annualised savings of $95 million," said a company statement.

"The company expects the majority of these savings to favourably impact pre-tax earnings."

Paul Rooke, Lexmark chairman and chief executive, said the company still has confidence in its ability to remain competitive and create value for its shareholders.

"Today's announcement represents difficult decisions, which are necessary to drive improved profitability and significant savings," said Rooke in a statement.

"Our investments are focused on higher value imaging and software solutions...and will continue to drive growth across the organisation."

The statement also confirmed that Lexmark has not ruled out selling off its inkjet-related technology.

At the time of writing, Lexmark's share price had risen by just over 16 per cent, with shares trading at more than $22, since news of the company restructure broke.

Featured Resources

How to scale your organisation in the cloud

How to overcome common scaling challenges and choose the right scalable cloud service

Download now

The people factor: A critical ingredient for intelligent communications

How to improve communication within your business

Download now

Future of video conferencing

Optimising video conferencing features to achieve business goals

Download now

Improving cyber security for remote working

13 recommendations for security from any location

Download now

Most Popular

How to find RAM speed, size and type
Laptops

How to find RAM speed, size and type

26 Feb 2021
How to connect one, two or more monitors to your laptop
Laptops

How to connect one, two or more monitors to your laptop

25 Feb 2021
How to build a CMS with React and Google Sheets
content management system (CMS)

How to build a CMS with React and Google Sheets

24 Feb 2021