Lexmark International Inc. on Monday said it will cut up to 1,600 jobs, or 12 percent of its work force, as the company tries to solidify its position in the computer printer industry.

        The cutbacks came as the Lexington company's top executive predicted a weaker market, even as the company announced higher third-quarter profits. Its stock price sank $5.58, to $44.77, Monday.

        Paul Curlander, Lexmark's chairman and chief executive, said the cutbacks were necessary to maintain the company's cost-com petitiveness.

        “These difficult steps are necessary to intensify our focus on being the low-cost producer in the industry,” he said. “They will also help us to make the required investment in research and development, and to continue gaining share in both the laser and inkjet markets.”

        The cutbacks will be felt companywide, but the company's Lexington headquarters and an assembly plant in Mexico will bear much of the brunt from the job reductions, company spokeswoman Jennifer Richard said.

        The company intends to cut about 600 jobs at its headquarters and 600 jobs at a plant in Reynosa, Mexico, she said. Lexmark plans to sell the Reynosa plant but keep two other plants open in Mexico, she said.

        Lexmark said the job reductions will result in pretax charges of $100 million to $120 million in the fourth quarter. The restructuring will produce annual savings of about $50 million to $60 million, the company said.

        Employees were notified of the cutbacks Monday but won't necessarily know immediately whether their jobs are targeted, Ms. Richard said.

        “It will take weeks to identify the positions and identify the employees and to move forward from there,” she said.

        Most of the jobs will be cut this year and will affect a variety of positions, Ms. Richard said.

        “It's across the board, across the company,” she said.

        The 10-year-old company has seven manufacturing sites and 150 sales and marketing offices around the world.

        Lexmark employees who voluntarily leave will be offered benefits based on length of employment, Ms. Richard said.

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