Lexmark today said it will exit its inkjet printer business and cut 1,700 jobs around the world in a move to save roughly $95 million annually.
The company, a former spinoff from IBM, is stuck in a cut-throat inkjet printer market that features HP and Canon as No. 1 and No. 2, respectively.
Lexmark said that it will provide supplies, service and support to its inkjet installed base. The move allows Lexmark to focus on high-value imaging and software, the company said in a statement.
Specifically, Lexmark said it will cut jobs related to inkjet manufacturing, development, and support. The company will close its Cebu, Philippines, manufacturing facility by the end of 2015. That closure will eliminate 1,100 manufacturing jobs. Another 600 jobs will be lost as inkjet development is terminated by the end of 2013.
Lexmark added that it is also looking into a sale of its inkjet technology.
For shareholders, Lexmark said it will begin a plan to buy back $100 million in shares through the third and fourth quarters of 2012.
The company indicated that it will take a $160 million pre-tax hit for the restructuring with $110 million incurred in 2012.
This story was first published as "Lexmark to exit inkjet printers, cut 1,700 jobs" on ZDNet's Between the Lines.