Lexmark says 'positive interest' in strategic options as jobs cut

Tue Feb 23, 2016 8:44am EST
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(Reuters) - Printer maker Lexmark International Inc said on Tuesday it would cut 550 jobs, or about 4 percent of its worldwide workforce, as it considers its future.

Lexmark, like other printer makers, is struggling to adjust as companies cut costs and consumers shift to mobile devices from personal computers.

The company said in October that it had hired Goldman Sachs Inc to advise on its options, including a sale.

"We are continuing our exploration of strategic alternatives and are very pleased with the progress being made, including the positive interest we are receiving," Chief Executive Paul Rooke said in a statement.

The 550 jobs will be eliminated over the next 12 months.

The company also announced a restructuring program to increase efficiency in its Imaging Solutions and Services business, primarily to address the effects of a strong dollar.

The business offers a range of monochrome and color laser printers and laser multifunction products as well as related supplies and services.

The restructuring is expected to generate about $67 million in savings in 2016 and annualized savings of about $100 million beginning in 2017, Lexington, Kentucky-based Lexmark said.

Lexmark said last July it would cut about 500 jobs over 18 months.   Continued...

A touch screen menu is displayed on a Lexmark Platinum Pro905 printer during "CES Unveiled," a media preview event, at the 2010 International Consumer Electronics Show (CES) in Las Vegas, Nevada in this file photo dated January 5, 2010. REUTERS/Steve Marcus