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© dirk ercken dreamstime.com Electronics Production | February 23, 2016

Lexmark to reduce its workforce

Manufacturer of printers Lexmark International is planning to reduce its workforce by 550 employees over the next 12 months as the company tries to find its footing.
The company, like many others within the printer market, is having a hard time adjusting to its customers shifting to mobile devices from PCs.

The company hired Goldman Sachs back during the fall of 2015 to adivse the company of its options going forward, and that included a potential sale.

In the company's full year fiscal report Paul Rooke, Lexmark chairman and chief executive officer, says that: "We are continuing our exploration of strategic alternatives and are very pleased with the progress being made, including the positive interest we are receiving."

The restructuring program which Lexmark is launching is designed to increase profitability and operational efficiency primarily in its ISS segment (Imaging Solutions and Services segment). Imaging Solutions and Services (ISS) revenue declined 13 percent YoY during the company's forth quarter. For the full year ISS revenue declined 12 percent compared to 2014.

Approximately 550 positions worldwide are expected to be eliminated over the next 12 months, a portion of these positions being shifted to low-cost countries. Currently, Lexmark has approximately 14'000 employees worldwide.

The program is aims to generate approximately USD 67 million in savings for 2016 and annualized ongoing savings of approximately USD 100 million beginning in 2017.

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