Kodak to Cut 15,000 More Jobs

ROCHESTER, N.Y., July 20 -- Eastman Kodak Co. announced today it plans to cut as many as 10,000 more jobs worldwide and to reduce manufacturing to approximately $1 billion, compared with $2.9 billion in January 2004.

It said the unexpected reductions are needed to cope with faster-than-expected declines in sales of consumer film and other traditional photographic products. The company had previously targeted up to 15,000 job cuts by 2007 when it announced in January 2004 a restructuring to facilitate its transition from film to digital photography. It now plans to cut a total of as many as 25,000 positions and to reduce its traditional manufacturing infrastructure to approximately $1 billion, compared with $2.9 billion in January 2004.

The restructuring is expected to be largely completed by the middle of 2007; it will reduce Kodak's work force to less than 50,000. Kodak's CEO and President Antonio Perez said that in June, Kodak's digital revenue exceeded its traditional revenue on a monthly basis for the first time, and "In 24 months, as a result of the actions announced today, we will bring to an effective end the significant restructuring charges associated with the transformation and essentially complete the transition to our digital business model. In that time, we intend to improve upon the success we are enjoying in digital markets.

"Kodak is a different company that’s becoming a stronger digital player each day," Perez said.

Today's Rochester Democrat & Chronicle reported that most of the new cuts -- 7000 - will take place in Kodak's shrinking manufacturing infrastructure. Kodak Park is the company's largest single manufacturing site. The article said the new cuts "will almost certainly end Kodak's decades-long run as the region's largest employer. At the end of 2004, Kodak employed 16,300 people in Rochester, just ahead of the University of Rochester and its medical center."

For more information, visit: www.kodak.com