In a perhaps unsurprising move, Lexmark kills its inkjet printer business as part of "restructuring action," closing off a Philippines inkjet supply manufacturing facility and eliminating all global injket development efforts.
The cost cutting measure (one Lexmark hopes will bring annual savings of up to $95 million) also eliminates 1700 jobs worldwide. The company already cut 625 jobs earlier.
The Lexmark inkjet printer business was not a very healthy one-- H2 2012 inkjet revenues for the company are down by -66% Y-o-Y.
The company will instead concentrate on "higher value imaging and software solutions" even if it will continue to "provide service, support, and aftermarket supplies" for inkjet customers.
The Lexmark inkjet business is reflects what is happening to all other printer vendors-- as Deutsche Bank analyst Chris Whitmore puts it, the "dead-tree format is dying." According to the analyst, combined Q2 2012 supply and hardware from all major vendors (including Canon, Epson, HP, Xerox, and Lexmark) are down by -6% Y-o-Y, with little or no hope for recovery.
