Lexington, Ky.-based Lexmark has announced that it will slash 700 jobs — about seven percent of its workforce — as part of a global restructuring program.

The restructuring follows the sale of Lexmark’s enterprise software business, including Perceptive, Kofax and ReadSoft to Thoma Bravo last May. Hyland Software, a subsidiary of Thoma Bravo, then bought Perceptive after the Lexmark deal was complete.

Lexmark CMO Jerry Grasso told the Lexington Herald Leader the restructuring will “align company talent with our strategy to ensure future success.”

There is no indication yet as to where the jobs will be cut. Lexmark officials did not immediately return CMSWire's email request for commentary. 

(UPDATE: a Lexmark spokesperson Thursday afternoon told CMSWire, "Lexmark is running a worldwide restructuring program to align company talent with our strategy to ensure future success. We are not talking about any country or location specifically, but the number will be approximately 700 worldwide over the next 12 months, out of our workforce of 10,000.")

Class Action Suit Pending

Lexmark is also facing a class action suit filed in US District Court for the Southern District of New York on July 20. 

In the suit, Lexmark investors, led by the Oklahoma Firefighters Pension and Retirement Fund, claim that the company, former CEO David Reeder, former interim CFO Gary Stromquist and former EVP Martin Canning “[issued] false and misleading statements regarding the Company’s end-user demand, channel inventory, and growth prospects for its high-margin supplies business.”

The complaint added that the company also failed to disclose deterioration in end-user demand and excessive inventory levels at its European wholesale distributors.

Lexmark’s Downhill Timeline

Lexmark has been struggling since the beginning of 2016 when it announced that it was looking at “strategic alternatives” to help revive its ailing fortunes. 

At the time, it was considering divesting its hardware and software assets separately to revive interest in its sale prospects.

In April 2016, Lexmark announced that a consortium of investors, led by China's Apex Technology and PAG Asia Capital, was buying the company in a deal worth $3.6 billion. 

At the end of 2016, David Reeder took over the helm after Paul Rooke, then-chairman and chief executive officer, stepped down. Reeder resigned in June of this year.

Details of what the entire restructuring plan will involve are not yet available. 

Déjà Vu All Over Again?

If this all sounds painfully familiar, it might be because it calls to mind the ongoing battle another technology giant and its saga of leadership changes and court cases.

HP spent a painful couple of years after it bought UK-based Autonomy for $11 billion and eventually had to write it off.

In that case, investors also sued HP, claiming that the tech company “had bought the company based on financial statements that were unreliable because of accounting manipulation.”

That case was fought in both the US and UK and has yet to be completely wrapped up.