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Lexmark is cutting 12 percent of its workforce

Lexmark is cutting 12 percent of its workforce

As part of a restructuring plan, the printer manufacturer Lexmark plans to lay off 1,600 employees worldwide and thus about twelve percent of its workforce. Furthermore, by closing a production facility in Mexico and reducing the production of some printer series, unnecessary costs should be reduced.

That The company expects the measures to generate annual savings of 50 to 60 million US dollars. However, Lexmark could, as one of the few in the industry, shine with very good quarterly counts without these measures. In the third quarter of this year, sales of one billion US dollars were achieved, an increase of eight percent compared to the same quarter of the previous year. The profit could also be increased by five percent to a total of 70 million US dollars. As a result of the restructuring, however, special charges of 100 to 120 million US dollars are expected for the fourth quarter of 2001, so that one will probably go with a loss from this quarter.