Kodak bankruptcy cost more jobs
When survival of insolvent Photo pioneer Kodak this year at least 3,700 people by the wayside. Since the beginning of the work force has already shrunk by about 2,700 people. To the company back on track, by the end of 1000 to more employees go as Kodak announced on Monday.
Kodak filed for bankruptcy in January. The pioneers of photography makes the shift to digital is hard to create. Even before the collapse in 2003 of 47,000 jobs have been axed and 13 factories closed down. The company employs in the past year to around 17,000 people.
"We realized that we need to reduce our cost base significantly and quickly," said now CEO Antonio Perez. He wants to reposition itself as a Kodak printing specialists. The roots of the company he cuts radically. Perez separates from photo films, cameras or scanners. The competition, particularly from Asia had proved to be too strong.
So far, the conversion is done, however, with little success, and it ran on high losses. Perez is now trying a new management team to turn the tide. The Swedish Norwegian competent President Philip Faraci and Chief Financial Officer Antoinette McCorvey go. It is followed by Rebecca Roof of the consulting firm AlixPartners, Kodak helps hoped restart.
In the first half, sales fell by more than a quarter to 2 billion U.S. dollars and the loss increased to $ 665 million. In the coming year the company will again but the black. The reboot is to be financed with the sale of the patent-rich arsenal to digital photography, Kodak had influenced in its early days as well. However, the indications were that Kodak would expect significantly less money than the scheduled 2.6 billion U.S. dollars. The auction should have been completed weeks ago, actually.
Kodak was at the end of the 19th Century, the photographic film was invented. The company made with cheap cameras taking pictures then become a mass market and pocketed huge profits, to the advance of digital images thwarted his business model.
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