Lexmark, like other printer makers, is struggling to adjust as companies cut costs and consumers shift to mobile devices from personal computers.
The company said in October that it had hired Goldman Sachs Inc to advise on its options, including a sale.
"We are continuing our exploration of strategic alternatives and are very pleased with the progress being made, including the positive interest we are receiving," Chief Executive Paul Rooke said in a statement.
The 550 jobs will be eliminated over the next 12 months.
The company also announced a restructuring program to increase efficiency in its Imaging Solutions and Services business, primarily to address the effects of a strong dollar.
The business offers a range of monochrome and color laser printers and laser multifunction products as well as related supplies and services.
The restructuring is expected to generate about $67 million in savings in 2016 and annualized savings of about $100 million beginning in 2017, Lexington, Kentucky-based Lexmark said.
Lexmark said last July it would cut about 500 jobs over 18 months.
The company also reported a 5 percent drop in revenue to $968.8 million for the fourth quarter ended Dec. 31.
Lexmark's net loss narrowed to $10.7 million, or 17 cents per share, from $22.6 million, or 37 cents per share, a year earlier. Excluding items, the company earned $1.16 per share.
Analysts on average had expected a profit of $1.09 per share and revenue of $982.1 mln, according to Thomson Reuters I/B/E/S.
Lexmark said it would not provide guidance as it continued to explore its options.
Up to Monday's close of $31.37, Lexmark's shares had fallen just over 30 percent in the past 12 months.
(Reporting by Arathy S Nair in Bengaluru; Editing by Don Sebastian and Ted Kerr)
