ROCHESTER, N.Y., Sept. 10, 2012 — Kodak will cut another 1000 jobs by year's end as the imaging company continues to restructure under Chapter 11 bankruptcy. The company also announced that two of its high-ranking officers are leaving.
The company has cut 2700 employees since the beginning of 2012 and will cut another 1000 by year's end. The reduction will save approximately $330 million a year, Kodak said. The company, which invented the digital camera but delayed entering that marketplace for far too long, has closed 13 manufacturing plants and 130 processing labs and reduced its workforce by more than 47,000 since 2003.
Chairman and CEO Antonio M. Perez announced the changes in a statement Monday, saying Kodak is "becoming a more focused and competitively scaled company. 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."
In addition to cutting its workforce, the company has implemented organizational changes to reflect its focus on its Commercial, Packaging & Functional Printing Solutions and Enterprise Services business. Kodak announced last month that it will sell its Personalized Imaging and Document Imaging businesses.
Under the new management structure, Philip J. Faraci — company president and COO since 2007 — and CFO Antoinette P. McCorvey are leaving.
McCorvey is being replaced, on an interim basis, by Rebecca A. Roof, a managing director of the company's restructuring advisor, AlixPartners.
The company will have three business segments: Digital Printing and Enterprise; Graphics, Entertainment and Commercial Films; and a new segment led by Laura G. Quatela that includes the two businesses for sale, Personalized Imaging and Document Imaging. Quatela was named Kodak co-president and COO in January.
Personalized Imaging contains the company's retail print operations, including 105,000 Kodak Picture Kiosks; its traditional photographic paper and still camera film products; and souvenir photos taken at theme parks and other venues. Document Imaging includes its portfolio of scanners, capture software and services to enterprise customers.
"Under this leadership structure, we are confident that we will move Kodak forward to conclude the Chapter 11 process and position the Kodak that emerges as a growing, sustainable, profitable company that continues to meet the needs of our customers," Perez said.
The company is still seeking a potential buyer for its digital imaging portfolio of more than 1100 patents.
For more information, visit: www.kodak.com