Lexmark has announced the closure of its struggling inkjet division, with 550 workers in its head office Kentucky plant set to lose their jobs.
The layoffs include 350 full-time employees, many in non-manufacturing jobs such as research and development and office support.
According to a Lexmark statement, an additional 1100-plus employees worldwide also will be affected, with a plant in Cebu, Philippines, closing by 2015. The company is attempting to sell the inkjet division and its extensive portfolio of patents.
Lexmark chairman and CEO Paul Rooke, who previously headed the inkjet division, said that Lexmark now sees its future in laser imaging and in computer technologies, such as those recently purchased by Lexmark, that allow work groups to share information, possibly without printing.
Rooke said sales of Lexmark's newest inkjet product, called OfficeEdge, "just wasn't enough to overcome some of the aggressive prices we've seen this year from competitors, and enough to warrant the investments to make it a sustainable, acceptable return on our business capital."
Industry analysts report that the growing popularity of smartphones and tablet computers make it easier for users to store and retrieve content with an internet connection. As a result, computer printers are used less frequently, especially in the home.
