Lexmark Ceases Inkjet Business, Cuts 1700 Jobs
Lexmark has announced plans to restructure, including the exiting of the development and manufacturing of the company's remaining inkjet hardware.
Once fully implemented, this move is expected to make savings of US$95 million per annum. The restructuring actions closing the Cebu, Philippines, inkjet supplies manufacturing facility by the end of 2015. The actions also include eliminating inkjet development worldwide, including costs related to facilities, tooling, equipment, contract termination, and scrapping in process inventory, which are expected to be principally complete by the end of 2013.
Also, about 1700 positions will be cut globally, including 1100 manufacturing positions. The company's actions are projected to generate US$85 million savings in 2013 and increase to yearly savings of US$95 million beginning in 2015.