Lexington, Ky. – Lexmark International announced today it is exiting the inkjet printer market.
The move involves shuttering the company’s inkjet supplies manufacturing facility in Cebu, Philippines, and stopping all development of inkjet products worldwide. The restructuring will result in the loss of 1,700 jobs worldwide, with 1,100 coming in the manufacturing sector, the company said.
Lexmark will continue to provide service, support and aftermarket supplies for its inkjet installed base.
The company expects to generate a savings of $85 million in 2013. Pretax cost of the closing should be about $160 million.
Lexmark CEO Paul Rooke called the decision “difficult,” adding the company intends to focus on higher value imaging and software solutions.
Lexmark’s printer market share is below 1 percent, according to an IDC report earlier this year.