Tuesday, September 11, 2012

Eastman Kodak Company (PINK:EKDKQ) to cut another 1,000 jobs by year-end

Bankrupt photography company Eastman Kodak Company (PINK:EKDKQ)  plans to cut another 1000 jobs by the end of the year, the company said on Monday, along with its exit from non-core businesses.

The company has already cut 2,700 jobs so far this year. The additional job cuts will mean savings of around $330 million, it said.

Kodak is becoming a more focused and competitively scaled company,” said Chief Executive Antonio M. Perez in a statement. “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.”

The company is selling off its business in chunks in order to streamline itself before coming out of bankruptcy and also to pay off its debts, especially to Citigroup, which bailed it out in a rescue package.

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In August Kodak had said that it was selling its personalised imaging and document imaging business. Earlier in April it had sold off its Kodak Gallery photo-sharing site to Shutterfly.

It is also in the middle of autctioning off about 1100 digital patents estimated at a worth of over $2 billion. owever bids came in at much lower prices and the company has indefinitely extended the bid deadline.

It also said that it may decide not to sell its patents after all.

Kodak filed for bankruptcy in January, failing to keep pace with changes in digital photography and also failing to innovate.

Top executives in the company are also leaving it.

Philip J. Faraci, a co-president, is leaving, the company said Monday. Chief Financial Officer Antoinette P. McCorvey is also jumping ship.

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