Lexmark to Lay Off 10 Percent of Software Group Employees

The Kansas City Star reports that Lexmark International – now owned by China’s Apex Technology and a consortium of investors – is laying off 320, or 10 percent, of its software-business employees. These employees are part of s unit that includes Lexmark’s Lenexa operations that was previously the company called Perceptive Software that Lexmark had acquired for $280 million in 2015.

A Lexmark spokeswoman said this week that the cutbacks reached “all functional areas in the Lexmark Enterprise Software business on a global basis” and was part of a restructuring that had begun January 3rd. Lexmark had begun discussing job cuts in its software unit last year.

“This action was taken to reduce our costs to be more in line with our revenues and those of comparable enterprise software companies,” said Sylvia Chansler, public relations manager for Kofax Inc. in Irvine, California In 2015, Lexmark acquired Kofax for $1 billion, and it became part of Lexmark’s software division.

Chansler also stated that Lexmark  remains “solidly profitable and therefore financially healthy.”

Lexmark was acquired last year by a Chinese consortium of investors led by Apex Technology of China and PAG Asia Capital for $3.6 billion. In November 2016, after Apex and others acquired Lexmark, the companies said that they planned to separate Lexmark’s enterprise software group from the rest of Lexmark and re-brand it as Kofax., as well as sell the software business.

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