Struggling computer printer maker Lexmark (NYSE:LXK) is moving to cut jobs as part of a three-year, $160 million restructuring effort.
The company announced that it will end production of ink-jet printers and will reduce its payroll by 13%, eliminating 1,700 workers. Lexmark will also solicit buyers for its proprietary ink-jet technology, the Associated Press noted.
Investors liked the news. Shares of Lexmark jumped 9% in early Tuesday morning trading.
Earlier this year, the company announced plans to trim its workforce by 625.
The new round of job cuts will mostly hit the company’s manufacturing division, where 1,100 employees will lose their positions. An ink-jet facility in the Philippines will also be shuttered within three years.
Last month, Lexmark posted lower second-quarter earnings and revenue that missed analysts’ estimates, and warned of a weaker third quarter.
With ink-jet sales dwindling, the company is concentrating on its expanding business services unit. It will continue to produce laser printers.
The restructuring is expected to reduce costs by $85 million next year, and as much as $95 million annually in three years.