US-based printer maker Lexmark is restructuring globally, slashing 1,700 staff and hiving off the inkjet division.
Paul Rooke, chairman and chief executive of Lexmark, said the "difficult" move would save a total $95m (£60m) a year by 2015.
"We remain confident in our strategy, competitiveness, and ability to create value for shareholders," he claimed. "Our investments are focused on higher-value imaging and software products, and we believe the synergies between imaging and the emerging software elements of our business will continue to drive growth."
Of the 1,700 job losses, 1,100 are expected to be in manufacturing. This will involve roles in R&D, supply chain, and support as well as inkjet-related infrastructure positions.
The vendor will continue to service, support and provide consumables for current users of its inkjets, but wants to sell its inkjet technology and wind up all inkjet development. By 2015 it will close its consumables factory in the Philippines.
Tooling, equipment, and facility costs will be cut, and process inventory will be scrapped as well as contracts terminated by the end of 2013, according to a statement from Lexmark.
The vendor is also planning an additional $100m of share repurchases in Q3 and Q4, with authority remaining for another $251m of share repurchases in future.
For Q2, the vendor reported weaker than expected demand, particularly in Europe, as well as "unfavourable currency impacts". Revenue was down 12 per cent to $921m year on year for Q2.
"Net [GAAP] earnings were $39m compared to 2011 net earnings of $101m," the vendor said in its Q2 announcements. "The company expects the same factors to impact the second half of 2012."
Hardware and supplies revenue shrank 17 per cent and 14 per cent respectively in Q2.
However, managed print services and Perceptive Software sales are continuing to grow, according to the latest Lexmark statement.
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