News that Lexmark will lay off hundreds of local workers has Lexington city officials assessing how it will impact tax revenues.

The Lexington-based firm will reduce it’s workforce by 350 full-timers and 200 contract employees locally. According to one city official that could result in a $1 million revenue loss.

Mayor Jim Gray said “our hearts go out to this folks who have been hit with this bad news, losing their jobs.”

But the mayor says Lexmark remains a competitive electronics business.

“They’ve said that they’re going to stay here in Lexington. Our best strategy as a city is to wrap out arms around the company, acknowledge the challenge that the employees are having, those who have been laid off.”

Gray and members of the Urban County Council say the city should do everything it can to help the laid off workers find other positions in the Lexington area.

Lexmark will lay off 1,700 workers worldwide following its decision to stop making inkjet printers.