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Kodak to shed 3,000 more jobs in digital transition
POSTED: 2:37 p.m. EDT, February 9,2007

US photo giant Eastman Kodak said it would shed an additional 3,000 jobs, bringing the total number of reductions to as many as 30,000 in its three-year plan to reorganize and move to digital imaging.

"During the past three years we have made visible and significant progress in creating the new Kodak," said Antonio Perez, chairman and chief executive.

"We have built the industry's leading provider of products and services for commercial printers, and this week we launched a long-awaited breakthrough value proposition for consumers in the inkjet market.

"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," Perez said.

Kodak was detailing to investors Thursday a plan "to generate profitable digital growth in 2007 and to position itself for further success in 2008 and beyond," the company said in a statement.

"As an early investor in digital technology, Kodak has amassed a sizeable amount of extremely valuable intellectual property," said Perez.

Kodak's restructuring program was first announced in January 2004 and updated in July 2005 and August 2006.

As of August 2006, the program anticipated the elimination of 25,000 to 27,000 positions and charges totaling 3.0 billion to 3.4 billion dollars.

During the fourth quarter of 2006, the company eliminated approximately 1,200 positions, bringing the program's total to-date to approximately 23,400 positions along with charges of 2.7 billion dollars.

But with the divestiture of Kodak's medical imaging operations, the company now expects that the total employment reductions will be in the range of 28,000 to 30,000 positions and total charges of 3.6 billion to 3.8 billion dollars in a program to be concluded by the end of 2007.

"Kodak is now a company comprised of numerous leading digital businesses with diverse sources of sales and earnings, coupled with strong intellectual property positions," said Perez.

"Our dramatic operational improvements during the past three years have created a solid foundation from which Kodak will become a growing digital company with innovative new products and services, attractive margins and strong cash generation."

From:AFP
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