Kodak to Cut 1,000 More Jobs as It Slims Down Bankrupt Business
Stock Chart for Eastman Kodak Co (EKDKQ)
Bankrupt photography pioneer Eastman Kodak Co. (EKDKQ) is losing more executives and plans to cut an additional 1,000 jobs by the end of the year as it shrinks into a commercial printing-focused company.
The latest job cuts follow the reduction of about 2,700 employees globally this year, the Rochester, New York-based company said today in a statement. Kodak is “making progress” in a restructuring that includes selling its consumer-film, photo-kiosk and commercial-scanner businesses and an extended effort to auction its digital-imaging patents.
Kodak also is shaking up its management structure and losing key executives. Chief Operating Officer Philip Faraci and Chief Financial Officer Antoinette McCorvey are leaving the company. Rebecca Roof, a managing director of restructuring adviser AlixPartners, will become interim CFO.
The company has been selling businesses to help fund a turnaround after seeking Chapter 11 protection in January. It’s also focusing less on photography and more on corporate services and commercial printing.
“We recognize that we must significantly and expeditiously reduce our current cost structure, which is designed for a much larger, more diversified set of businesses,” Chief Executive Officer Antonio Perez said in the statement. Reorganizing management “will help accelerate the creation of a sustainable cost structure.”
Co-president Laura Quatela will oversee the sale of the personalized-imaging business, and Dolores Kruchten will lead the document-imaging unit through its sale. Kodak expects both transactions to be completed by the first half of 2013.
Kodak filed for bankruptcy after years of burning through cash while the rise of digital photography eroded its film business. The company had spent $3.4 billion on restructuring before bankruptcy, including payouts to fire 47,000 employees since 2003, closing 13 factories that produced film, paper and chemicals, and 130 photo laboratories.
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