The pioneer of photography business, Eastman Kodak Company (PINK:EKDKQ), announced today to cut a thousand more jobs by the end of 2012. The company has already laid off 2,700 employees since the beginning of this year to accelerate its cost reduction efforts. The two top executives, CFO Antoinette P. McCorvey and Co-president Philip J. Faraci will also be leaving the company.
In January, Kodak filed for Chapter 11 bankruptcy with an expectation of sputtering turnaround. The Rochester, New York-based company has planned to exit bankruptcy by the end of 2013. Kodak had nearly 150,000 employees worldwide in 1988, but the company couldn’t maintain the momentum for long. The competition from Japanese giants such as Sony and Canon, and shift to digital technology hampered Kodak’s business.
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The company said it would sell its photo-kiosk, consumer film and commercial scanner business in an attempt to reshape its business. After the restructuring, the company will have three business units: Graphics, Entertainment & Commercial Films, and Digital Printing and Enterprise.
Before filing for the bankruptcy, Kodak spent $3.4 billion to restructure itself while digital photography continued to ruin its core business. The company has fired 47,000 employees, closed 130 photo laboratories and 13 factories since 2003. The company expects to reduce annual expenditures by $330 million through headcount reductions.
“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,” said Chairman and Chief Executive Antonio M. Perez.
Rebecca A. Roof of AlixPartners, Kodak’s restructuring adviser firm, will be the new interim CEO. Kodak said in a statement that Roof has extensive experience in helping companies emerge from Chapter 11 bankruptcy. She has worked with other companies to reduce overhead costs, manage liquidity and execute asset sales.
Founded in 1880, Eastman Kodak Company (PINK:EKDKQ) led the global photography business for over a century. The company introduced Brownie camera in 1900 and made hobby photography affordable to the common man.