Printer industry continues to suffer amid poor global economy, as Lexmark cuts 1,700 jobs and inkjet business.
Kentucky.com reports on the significance of Lexmark’s decision to cut 1,700 jobs and cease its inkjet printer manufacturing business, with the company not being alone in its financial struggles and the article recognising that “layoffs have become an unfortunately common part of the economic landscape”.
The article goes on to state that in the current economic climate, “companies that survive can’t just hunker down and hope for the best. They’ve got to anticipate the future and prepare for it”; and applies this advice to “the mayor, private business people and economic development leaders” as it highlights that communities need to work to attract both employers and employees.
“On the most basic levels, that means our streets, our water must be safe and our schools are open for business. But beyond that, it means we’ve got to have a vibrant downtown, flourishing neighbourhoods, a lively and diverse arts and entertainment scene, an education system whose graduates are ready to enter the world and employers are eager to hire.”
Potential Traders also makes comment on what Lexmark’s recent money-saving decisions tell us about the printer industry and the global economy in general, with the article predicting that the industry “could continue to suffer from the weak economic situation across the world in the coming months” and many businesses choosing to suspend large purchases “until prospects gain stability”.
Lexmark’s stock price are reported to have ranged from a high of $38.54 (€29) to a 52 weeks low of $16.10 (€12.80), with its overall traded volume being 4.19 million shares, more than the 2.65 million average.
On a purely speculative note, Industry Analysts suggests that Lexmark “may be preparing itself for a sale” after observing the company’s decision to cut its workforce and inkjet business. The article also speculates that Xerox Corp. would be “the most logical buyer” as it “could snap up a business once valued at more than $12 billion (€9.5 billion) with only a year’s worth of free cash flow”.
Lexmark recently announced that it would cut 1,700 jobs and cease its inkjet manufacturing operations by 2015, with Gartner analyst Federico De Silva commenting on how this signifies the growing pressure businesses in the industry are under.