Lexmark, longtime maker of inkjet printers, is shutting down its staple business and laying off 1,700 employees as it looks to compete in an ever-paperless world.

Of the 1,700 workers it's letting go, more than 550 of them are reportedly from Lexington, Ky., the company's hometown.

The company also plans to close a manufacturing plant in the Philippines, which employs 1,100 people, by 2015.

Out of ink

With annual savings of $98 million (£61.9) expected thanks to the cuts - expected to go into full effect by 2015 - Lexmark is looking to refocus its attention on "higher value imaging and software solutions," CEO Paul Rooke reportedly said.

Before Lexmark can see savings, it will have to payout approximately $160 million (£101) in severance and other costs.

In a sign it really is getting out of the inkjet biz, Lexmark plans to cover those expenses through the sale of about 1,000 inkjet-related technology patents.

Those who own a Lexmark printer, like the Pro X4875, need not worry about refilling cartridges or replacing broken parts as the company plans to continue producing and providing support for these defunct devices.

Via Associated Press, Hot Hardware, Sacramento Bee