Lexmark slashes 1600 jobs worldwide

Computer printer maker Lexmark said it will slash its worldwide workforce by as much as 12 per cent, or 1600 jobs, as part of a restructuring plan to reduce infrastructure and overheads.

Lexmark plans to lose 200 jobs from its European operations, 700 jobs by closing an electronic card facility in Mexico, and between 600 and 700 jobs from its American operations.

The cuts in Europe and the US will be made through a voluntary-separation program offered to the company's employees worldwide.

Lexmark officials said the reductions are necessary for the company to remain competitive.

"These difficult steps are necessary to intensify our focus on being the low-cost producer in the industry," Paul Curlander, Lexmark chief executive, said in a statement.

"They will also help us make the required investment in research and development, and to continue gaining share in both the laser and the inkjet markets."

Lexmark said net earnings rose to $70m, or 52 cents a share, compared with $66m, or 50 cents per share, one year ago. According to First Call, the consensus estimate was 52 cents.

Revenues rose to $1.0bn from $926m a year ago, led by its sales of printers and associated supplies, which rose 11 per cent from a year ago.

Lexmark also slashed its fourth-quarter forecast and said the company expects its revenue to be flat with the previous year. It expects per-share earnings of 40 to 50 cents, before the restructuring and related charges. It had previously predicted a profit of 70 to 80 cents a share.

See also:

Lexmark X83

The latest and highest-spec multifunction device from Lexmark.  27 Sep 2001

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