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Lexmark To Lay Off 12 Percent of Workforce

Printer makers sees higher revenues and profits By Dave Nagel
Lexmark today announced that it plans to lay off about 12 percent of its global workforce, despite reporting higher revenue and profit in its third fiscal quarter of 2001. Lexmark says the move is designed to help it stay competitive in the low-cost printer business.

Lexmark's revenue for the third quarter, ended Sept. 30, was $1.004 billion, up 8 percent from the same quarter last year. Profits were up 5 percent for the quarter, coming in at $70 million. The company's printer and supplies business was up 13 percent for the quarter, according to the company.

Nevertheless, the workforce cuts will cost the company a pre-tax charge of $100 million to $120 million and is expected to result in an annual savings of $50 million to $60 million.

"These difficult steps are necessary to intensify our focus on being the low-cost producer in the industry. They will also help us to make the required investment in research and development, and to continue gaining share in both the laser and inkjet markets," said Paul J. Curlander, chairman and CEO, in a prepared statement.

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Dave Nagel is the producer of Creative Mac and Digital Media Designer; host of several World Wide User Groups, including Synthetik Studio Artist, Adobe Photoshop, Adobe InDesign, Adobe LiveMotion, Creative Mac and Digital Media Designer; and executive producer of the Digital Media Net family of publications. You can reach him at [email protected].

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