Kodak Status Report: More Job Cuts to Come
Kodak plans to cut more jobs as part of their three-year reconstruction program from film to digital business.
Products are chosen independently by our editors. Purchases made through our links may earn us a commission.
February 8, 2007 – Kodak plans to conclude their three-year reconstruction program by the end of 2007, reported Kodak in an investors meeting today. In its business shift from film to digital markets, the company plans to cut more jobs.
"During the past three years, we have made visible and significant progress in creating the new Kodak," said company CEO Antonio Perez in a press release today. " In 2007, we are continuing to move aggressively to complete the transformation of our business operations and fully implement a business model which will power our future success in digital markets," he said.
First announced in January 2004, the three-year program began with the company’s decision to discontinue film production. In 2006, Kodak announced it would outsource digital camera manufacturing to Singapore-based Flextronics. This business paradigm shift from film to digital has translated into an estimated job loss of 23,400 thus far with an expected 28,000 to 30,000 total job losses by the end of the year. These job losses will cost the company $3.6 to $3.8 billion by the end of 2007, according to the release.
Industry analysts have not yet determined the overall financial health of Kodak because of the ongoing three-year reconstruction program, according to a Reuters report issued today. Kodak maintains that it is "well-positioned for sustained, profitable growth," stating in the release that the company is making significant progress through their digital business strategy.
For consumers, Kodak’s transition plan means customers can expect to see more inkjet technology, as the company announced its entrance into the all-in-one printing market just days ago. Kodak anticipates further success with the Kodak Gallery and Kodak Picture Kiosks. The company also plans to introduce more image sensor technology, such as the sensors used in the Leica M8 and Hasselblad’s digital backs. Kodak said it plans to continue their ongoing intellectual property licensing program that is expected to generate $250 million this year alone.
Kodak made some financial recovery last year. In 2006, the company net losses totaled $754 million, down from $1.35 billion the year before, according to Reuters. Kodak expects revenue growth to rise 5 to 7 percent this year.