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Lexmark Announces Future Workforce Changes At Headquarters
March 25, 2016
Yesterday Lexmark provided further details as to the first set of layoffs initially announced in late February. According to The Recycler and WKYT, a Lexington, KY CBS affiliate, at minimum 143 staff at the Lexmark headquarters will lose their jobs between M ay 25 and June 8 of this year. Lexington mayor, Jim Gray, to assist those impacted by the layoffs has reportedly reached out to Lexmark leadership to see what the city can do for them.
These roughly 143 layoffs are part of the initial figure of 550 jobs that will be cut throughout the organization worldwide which was announced along with the restructuring the company is undertaking. Company spokesperson Jerry Grasso said that the affected staff were notified of the impending layoff prior to the announcement, but other than that Lexmark will not discuss anything further regarding human resources. Currently the headquarters employs 2,300 people, and WKYT noted that the OEM had had a tough time adjusting to changes in the technology climate. The most recent quarterly financials shared by Lexmark showed a 5% decline in revenue despite growth in software, the financial impact from their exit of inkjet printing tempered the growth.
The restructuring the company is currently undergoing is expected to generate as much as $100 million each year beginning with 2017, and $67 million this year. Lexmark has also said that among the 550 jobs being cut, a “‘portion’” would be shifted to “‘shifted to low-cost countries’”
Lexmark CEO Paul Rooke, with regards to the company’s progess said they are , “‘continuing our exploration of strategic alternatives and are very pleased with the progress being made, including the positive interest we are receiving. During this process, we remain squarely focused on the execution of our strategy, our commitment to our customers, partners, suppliers and employees and driving value for our shareholders’”
The OEM also noted that it was very satisfied with the interest the company has received from possible suitors for both the hardware side (Canon and Ricoh), as well as for the software business.