The US firm has announced its withdrawal from the business, ceasing its development of the technology by 2013.
It has estimated that 1,700 jobs will be lost as a result of the decision.
Lexmark made the decision to close its inkjet printing operations as part of its efforts to boost its profitability, with the move expected to save the company $95 million per year.
A recent earnings report for the firm showed its net profit had fallen to $39.2m between April and June, 61 per cent lower than the same quarter of the previous year.
Stuggles within the inkjet market are well documented as demand for the technology continues to dwindle with the growth of social media sites such as Facebook, Twitter and Instagram, as users choose to post their images online rather than print them.
Lexmark has long been a small fish in a big pond, as the market is dominated by brands including HP, Canon and Epson, who's sales account for nearly 90 per cent of total sales worldwide.
The firm's chairman and chief executive Paul Rooke, issued a statement on the decision, which read: "Today's announcement represents difficult decisions, which are necessary to drive improved profitability and significant savings."
Lexmark will continue to sell laser printers, whilst focusing on its imaging software and document management services.
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