Push has finally come to shove at Eastman Kodak Co with the photographic and digital imaging giant set to cut 10,000 of its 95,000-strong workforce in a desperate attempt to save up to $2.0bn. The layoffs will contribute to half of a $1.0bn restructuring charge the company will take in the fourth quarter. Kodak has been skating on increasingly thin ice for some time now, last month posting third-quarter net income that plunged 43.4% to $232m on revenue down 9.4% at $3.79bn (CI No 3,268). The job losses have not come as a surprise; Kodak warned it would cut 200 senior and middle management positions as well as implementing a 10% cut in general and administrative staff (CI No 3,256). The official line now is that jobs will be axed across the entire company throughout the world. Research and development spending will also be reduced by between $100m and $150m next year. Kodak executives told analysts on Tuesday that they expect losses for the company’s digital imaging business to continue in the short term, but the business will strengthen over time. Chief executive George Fisher has previously said that his commitment to the digital product lines – including cameras, scanners, printers, writeable CDs and image manipulation software – is unwavering. These products for emerging markets have effected deep losses already, but investors have been duly warned by Fisher that spending in that sector will continue to increase. Fisher, who came to Kodak from Motorola nearly four years ago to turn the company around, has also admitted continuing problems in executing its business plans (CI No 3,207). In July, there was much speculation that Fisher would leave Kodak to become Robert Allen’s successor as CEO at AT&T Corp.
