Lexmark International Inc. announced yesterday afternoon that it will be exiting the inkjet business. The company will give up development and manufacturing of its remaining inkjet hardware, which is expected to result in ongoing annualized savings of $95 million.
The company made the decision to restructure in order to improve profitability and savings, according to Lexmark. Reductions in the inkjet-related infrastructure also include the elimination of positions in research and development, supply chain and other support functions.
Lexmark estimates that approximately 1,700 positions worldwide, including 1,100 manufacturing positions will be lost. The company is exploring the sale of its inkjet-related technology.
Going forward, the vendor’s investments will focus on higher value imaging and software solutions, a strategy, it says, is designed to improve competitiveness and create value for shareholders.
According to IDC, HP, Canon and Epson are the top three hardcopy market leaders.
Lexmark reported $4 billion in revenue in 2011, with approximately 58 percent of that revenue coming from international sales. The company’s products are sold in more than 170 countries in North and South America, Europe, the Middle East, Africa, Asia, the Pacific Rim and the Caribbean.