Kodak: Not Enough Cropping?

Talk about too little, too late. Eastman Kodak's lame duck CEO Kay Whitmore publicly laid out his turnaround plan on Aug. 18. The details: elimination of 10,000 jobs, or 7% of Kodak's work force, and capital-spending reductions producing $1.1 billion in free cash flow by fiscal 1995. But Kodak directors had already deemed his plan too lenient when they voted in July to replace him as chief executive by the end of the year.

Analysts say Whitmore's program is a modest start for the beleaguered $20 billion Rochester (N.Y.) photography and chemical behemoth, but it may not slash nearly deeply enough. Smith Barney, Harris Upham analyst Peter Enderlin says investors expect Whitmore's successor to push for an additional 5,000 to 10,000 job cuts and to try to boost cash flow even more.

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