Lexmark Shuts Down African Subsidiary Amid Cost-Cutting Measures

IBM’s former "Printing" division, which became independent in 1991 due to a spin-off operation on the New York Stock Exchange, has proceeded to liquidate its subsidiary, Lexmark International Africa, reports Challenge. This is an entity created 11 years ago to oversee its commercial operations in Africa and the French Overseas Departments and Territories (DOM-TOM).

Since its acquisition at the end of 2016 by a consortium of Asian investors, composed of the Chinese manufacturer of ink cartridge chips, Apex technology, the Asian fund, PAG Asia capital, and Legend capital (formerly Lenovo Capital), the financial difficulties of the subsidiary have accumulated.

Since then, the three CEOs who have succeeded each other have worked to rationalize costs and make budget cuts. These measures have irreversibly led to the elimination of thousands of jobs worldwide.

In addition, "Lexmark" printers are no longer selling well due to strong competition, with the HP and Canon brands holding more than 50% of the market.