Lexington, KY -- According to reports, Lexmark will be cutting 625 jobs in the United States and around the world in its consumer printer manufacturing arm. This is part of a new path Lexmark is embarking on as they move out of the consumer printing space.
Lexmark, instead, has chosen to focus their efforts on offices and people in the corporate sector instead. It’s not a secret that the real money for OEMs comes from consumable sales like ink and paper which are purchased multiple times compared to printers which are purchased just once. Also, in office environments, there will be a lot more volume compared to a home or even a home office.
CEO of Lexmark, Paul Rooke would not give specifics on how many jobs would be cut where, however he did say that the majority would be overseas. As of their 2010 annual report, Lexmark had 13,200 employees, 3,900 of which worked in the United States. This move will help Lexmark to save roughly $15 million annually, and “‘ongoing cash savings of $28 million by 2013.’”
