has been a mainstay in the inkjet printer business for as long as we can remember, so it comes as a bit of a shock that the company is bowing out of the segment as part of an aggressive restructuring plan to cut costs. By ceasing development and manufacturing of inkjet hardware, Lexmark estimates it will save some $95 million annually.
"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.
"As we move forward, we remain confident in our strategy, competitiveness and ability to create value for shareholders."
It's an even more difficult decision for the 1,700 employees worldwide affected by Lexmark's restructuring, all of which will receive a pink slip. That includes 1,100 manufacturing positions, Lexmark said.
Lexmark is also exploring the idea of selling its inkjet-related technology, though no potential buyers have yet been announced. In the meantime, Lexmark promised to continue providing service, support, and aftermarket supplies for current inkjet printer owners.