ROCHESTER, N.Y. -- Eastman Kodak Co. plans to cut its work force by as much as 21 percent by the end of 2006 and take charges of $1.3 billion to $1.7 billion, in a strategy the company regards as a painful necessity for its transition to film-less digital imaging.
According to an article in the Wall Street Journal, the plan, which Kodak announced early today, will eliminate from 12,000 to 15,000 jobs and result in annual operating-cost savings of $800 million to $1 billion by 2007.
Also Thursday, Kodak said its fourth-quarter net income was $19 million or seven cents a share, compared with net income of $113 million, or 39 cents a share, in the year-earlier period. Sales rose 10 percent to $3.8 billion. Excluding the impact of foreign exchange, sales were up 4 percent, according to the article.
Excluding the impact of restructuring costs and other items, Kodak reported operating earnings of 70 cents a share, compared with Wall Street's estimates of 52 cents.
Kodak's planned cutbacks will hit mainly its traditional film, paper and photo-finishing businesses, where the company said it will eliminate manufacturing jobs and reduce support and corporate staff, according to the article. Kodak also plans to reduce total facilities space worldwide by one-third, and to continue to shutter photo-finishing labs that serve retailers.
