Lexmark Bows Out of Printer Business, Will Lay Off 1,700 Employees

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News Posted: Tue, Aug 28 2012 12:01 PM
Lexmark 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."

Lexmark Inkjet Printer

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.
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Erakith replied on Tue, Aug 28 2012 1:14 PM

Wow, that's totally bizarre. Yet another company selling off/bailing on its roots to move forward with newer options / greener pastures.

First Kodak sells its film business (granted, it should have been gone a long time ago) and now this. Whoa.

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realneil replied on Tue, Aug 28 2012 3:09 PM

I never did like Lexmark printers. Had lots of problems with them when they first came out, so I avoided buying them thereafter.

I hate to see 1,700 people get the axe though,..........

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Yes it truly is weird. Are they going for the mobile market aswell? Who knows , it takes a great risk to be successful

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JOMA replied on Tue, Aug 28 2012 4:06 PM

That's kind of a shock. I really had forgotten all about them until now. One of my very first cheap printers was a lexmark. It was quite a piece of junk. Never bought anything from them after that.

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eunoia replied on Tue, Aug 28 2012 7:49 PM

.

...pending.

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realneil replied on Tue, Aug 28 2012 8:03 PM

eunoia:
there just isn't any money in making printers, let's put all our focus on making the ink

Those exorbitant Ink prices have been financing the costs of making most lower end printers for years. If they can sell you the printer for dirt cheap, you'll be locked into buying their expensive ink.

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rapid1 replied on Tue, Aug 28 2012 8:44 PM

LOL I almost never buy brand name ink no matter the printer you can even get it refilled at any office supply store, most drug stores, Costco etc, but heck you can go to a second hand ink store and buy full factory fit ink for a 1/3 of the cost of name brand ink. Either way I never liked Lexmark much...

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karanm replied on Tue, Aug 28 2012 11:30 PM

I bought a cheap Lexmark printer when I went to university, got sucked into buying their expensive ink because I used to print a lot of notes. Then I got pissed and found cheaper alternatives and that printer has been sitting in my closet since then. Last thing I printed was a resume to take to an interview, and that was a waste too because I had already emailed them one and the interviewer had it. I agree with the opinions of the former Lexmark printer owners above, good riddance to bad rubbish!!

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I've never had any problems with any of the Lexmark printers I've owned in the past two decades, they have all been reliable and dependable, from the old parallel port models of the early 1990s to the laser USB and & WiFi models of the past five years. Perhaps the folks who have had negative experiences should remember that whenever you buy any low-end/tier product you'd sacrifice quality and then some, don't expect a Cadillac when you settle for a bottom of the barrel Chevrolet.

BTW, @Paul Lilly, you should've titled this article to more accurately depict the contents of the post and the press release from PRNewswire, i.e. Lexmark Bows out of the Inkjet Printer Business, not the printer business as a whole.

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realneil replied on Wed, Aug 29 2012 9:10 AM

FrankAnglachel:
don't expect a Cadillac when you settle for a bottom of the barrel Chevrolet.

I just wanted mine to print when I needed it to. It was a POS though and I got much better results from HP & Epson printers. That's why I quit buying Lexmark at all.

It's good to see that at least someone had a good experience with that brand.

BTW: My low cost, bottom of the barrel HP and Epson printers ~all~ worked great for a long time. There was a huge difference in quality between them and Lexmark.

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