Update: What Economic Impact Will Lexmark Job Cuts Have?

Update: What Economic Impact Will Lexmark Job Cuts Have?

Many of the 550 jobs cut are high-paying, skill specific positions in the company's research and development and office support.
Lexmark announced Tuesday it's cutting 1,700 hundred jobs worldwide.

The cuts will affect about 550 employees in Lexington.

Many of those positions are research and development and office support in the company's inkjet division.

UK Economics Professor Ken Troske says although the loss of a few hundred jobs in a community the size of Lexington wont have a huge economic impact overall, many of those jobs are high paying and skill-specific, which could mean those laid-off might have a harder time finding new work locally.

Vice President of Corporate Communications Jerry Grasso says Lexmark will also close its inkjet supply plant in the Philippines by the end of 2015.

And the company plans to stop making inkjet printers as a way to cut costs.

The cuts in Lexington will include 350 full-time workers and 200 contractors.

Most of those positions will be terminated by the end of 2012.

The company headquarters will remain in Lexington, with about 2,300 employees.

Lexington Mayor Jim Gray reacted to the news and said, "This is a tough reminder in tough times: in today's competitive economy, no market is forever. Even the strong struggle, and there's nothing I can say that will make this announcement hurt any less."
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