Lexmark Stops Inkjet Printers And Eliminates 1,700 jobs

Lexmark announced Tuesday the creation of a major restructuring plan. The return to profitability will notably promised by the market exit of inkjet printers.

The ink jet printer, a too competitive market? The American Lexmark Tuesday unveiled the outlines of a major restructuring plan at the end of which totally abandon this market. Consumables production, however, will continue until 2015, so as to continue to serve customers already equipped. At that time, Lexmark plans to close its factory specializing in Cebu, Philippines.

The output of Lexmark will result in the elimination of approximately 1,700 positions worldwide, of which 1,100 are directly involved in the production of goods jet ‘ink. The US manufacturer planchera in parallel on the sale of assets associated with this activity, without specifying the moment when a competitor has already expressed interest.

Lexmark and aims to cut $ 85 million from its annual expenses 2013, with a target of $ 95 million for 2015.

“Today’s announcements represent a difficult decision, but necessary to lead to higher profitability and significant savings  ,” said Paul Rook, CEO of Lexmark in a statement. Officially, the course is now set to imaging products and software with higher added value.

For the second quarter of fiscal 2012, Lexmark had, in late July, reported a turnover of 919 million dollars against 1.044 billion a year earlier, together with net income of $ 39 million.

The stock market has positively welcomed the decision, with a title that was trading at about $ 22 an hour after the opening of US market Tuesday, up 16%.