Lexmark announced it will shut down its inkjet printer business, and focus on its laser printer and print services businesses. The firm is having a hard time in a market dominated by HP, Canon and Epson, these three firms combined command roughly 90 percent of the market. Spending on inkjet printers is also falling due to a change in consumer behaviour, people are sharing more online and printing less due to the rise of smartphones and tablets.
The company will cut 1,700 jobs in the process, and also plans to completely stop selling ink by 2015.
"Today's announcement represents difficult decisions, which are necessary to drive improved profitability and significant savings," explained Lexmark CEO Paul Rooke.
The company is also looking to raise additional cash by selling its inkjet patents, it added.
Lexmark said it expects to accrue annual savings of $95m from the closure of its inkjet business through job cuts, factory closures and mothballing its development facilities.