Kodak to cut 10,000 jobs
Rochester, N.Y ? The digital revolution dropped another bombshell Wednesday on Eastman Kodak Co.’s already beleaguered work force.
Even as Kodak speeds down the digital-photography highway, the picture-taking pioneer is struggling to cope with a sharper-than-anticipated drop in demand for conventional silver-halide film – its cash cow for the last century.
Kodak’s solution: Ax 10,000 more jobs.
The newest job cuts, on top of 12,000 to 15,000 targeted 18 months ago, coincided with the disclosure of its third consecutive quarterly loss.
Kodak missed Wall Street forecasts by a wide margin, largely because of a steeper-than-expected slide in film revenues – even in emerging markets such as China. The company lost $146 million, or 51 cents a share, in the April-June quarter, compared with a profit of $136 million, or 46 cents, a year ago.
Sales grew 6 percent to $3.69 billion from $3.46 billion in last year’s second quarter.
Excluding restructuring and research charges, plus a $19 million charge for reducing the value of an investment in China’s Lucky Film Co., Kodak posted earnings from continuing operations of 53 cents a share. Analysts surveyed by Thomson Financial had forecast earnings of 80 cents a share.