Business

Lexmark announces 700 layoffs worldwide over next year

Lexmark is running a worldwide restructuring program that will result in 700 of its 10,000 worldwide employees being laid off over the next year, it announced Tuesday.

Lexmark’s Jerry Grasso said the action will work “to align company talent with our strategy to ensure future success.”

“We are not talking about any country or location specifically,” Grasso said.

About 2,300 people work for Lexmark in Lexington, Grasso said, the same number as last year.

Lexmark has had a tumultuous two years.

In April 2016, the company announced that it had agreed to be acquired by an Asian investment consortium. Taking the company private removed Lexmark common stock from the New York Stock Exchange.

Paul Rooke, chairman and chief executive officer of Lexmark, left the company after the acquisition was completed in November, 2016. He was succeeded by David Reeder, who had been at Lexmark since 2015. Reeder resigned abruptly in June, 2017, citing “personal reasons.”

The sale of Lexmark’s enterprise software unit, once the great hope of the business under Rooke’s business plan, was completed by private equity firm Thoma Bravo in July. With the exit from enterprise software, Lexmark became once again solely a printer company.

A lawsuit filed in United States District Court in New York on July 20 alleged that Lexmark “made false and misleading statements” about demand, inventory and growth prospects for its supplies business in 2014-15 that cost shareholders more than half a billion dollars.

The suit was filed by the Oklahoma Firefighters Pension and Retirement System. Defendants in the suit include Lexmark; Rooke; Reeder; Gary Stromquist, who had been an interim chief financial officer; and Martin Canning, former executive vice president and president, imaging solutions and services at Lexmark.

Lexmark operates in 170 countries.

Cheryl Truman: 859-231-3202, @CherylTruman

  Comments