Lexmark announced Tuesday it's cutting 1,700 hundred jobs worldwide.
The cuts will affect about 550 employees in Lexington.
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."