Lexmark, computer printer maker, announces cutback of 1,600 jobs, 12 percent of work force
Monday, October 22nd 2001, 12:00 am
By: News On 6
LEXINGTON, Ky. (AP) _ Lexmark International Inc. said Monday it will cut 1,600 jobs, or 12 percent of its work force, as the company tries to solidify its position in the computer printer industry.
The cutbacks will be felt companywide, but the company's headquarters in Lexington and an assembly plant in Mexico will bear the brunt of the job reductions, company spokeswoman Jennifer Richard said.
The company intends to cut about 600 jobs at its headquarters and another 600 jobs at a plant in Reynosa, Mexico, she said. Lexmark plans to sell the plant, but keep two other plants open in Mexico, she said.
``These difficult steps are necessary to intensify our focus on being the low-cost producer in the industry,'' Paul J. Curlander, Lexmark's chairman and chief executive officer, said in a statement.
Lexmark said the job cutbacks will result in fourth-quarter, pre-tax charges of $100 million to $120 million. The restructuring will achieve annual savings of about $50 million to $60 million, the company said.