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Kodak Cuts Jobs
Eastman Kodak (EK), stung by a slowdown in film sales since last September, is cutting 3,000 to 3,500 jobs, or up to 4.5% of its global workforce, to cut costs and improve the effectiveness of its operations.
The job-cutting plan was announced Tuesday as the world's biggest photography company posted a 48% drop in first-quarter profit. Kodak employs 78,400 people overall.
"The slowdown in photo industry activity, which essentially flattened out in this quarter, is entirely consistent with the overall slowdown in the U.S. economy," said Chief Executive Daniel Carp. "We see nothing in the form of negative trends unique to our industry."
Kodak said the job cuts were needed for a "continuing improvement in Kodak's cost structure and operational effectiveness."
The company is taking a pre-tax restructuring charge of between $375 million and $450 million in the second and third quarters.
Kodak's quarterly net profit came to $150 million, or 52 cents a share, compared with $289 million or 93 cents a share a year ago. The results edged Wall Street analysts' expectations of 51 cents a share, as reported by Thomson Financial/First Call.
Sales fell 4% to $2.975 billion from a year ago.
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