Printer vendor Lexmark is to exit the inkjet market, resulting in the loss of around 1,700 jobs.
Lexmark confirmed the product strategy change in an investor statement earlier today and claimed the move would generate $95 million in annual savings from 2015.
These savings would be generated by scrapping the research, development and manufacture of the company's inkjet products, as well as the closure of its factory in the Philippines.
"These actions are expected to generate $85 million savings in 2013, increasing to ongoing annualised savings of $95 million," said a company statement.
"The company expects the majority of these savings to favourably impact pre-tax earnings."
Paul Rooke, Lexmark chairman and chief executive, said the company still has confidence in its ability to remain competitive and create value for its shareholders.
"Today's announcement represents difficult decisions, which are necessary to drive improved profitability and significant savings," said Rooke in a statement.
"Our investments are focused on higher value imaging and software solutions...and will continue to drive growth across the organisation."
The statement also confirmed that Lexmark has not ruled out selling off its inkjet-related technology.
At the time of writing, Lexmark's share price had risen by just over 16 per cent, with shares trading at more than $22, since news of the company restructure broke.
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