Kodak to cut 4500 jobs

Following poor quarterly results

4 February 2009 13:21 GMT / By Verity Burns

Kodak has announced it will cut up to 4500 jobs this year, in an attempt to cut costs following disappointing quarterly results.

A dramatic decline in the demand for the companies products meant its fourth-quarter loss from continuing operations was $137 million, compared with a profit of $215 million the year earlier.

Sales of Kodak's primary products such as still and video cameras, and digital picture frames fell 36%, impacting on revenue which fell 24% to $2.43 billion.

"During the last three months of the year, we experienced dramatic declines in several of our key businesses due to the slowdown in consumer spending and significantly reduced demand for capital equipment", chief executive Antonio Perez said in a statement.

As a result, the company has confirmed that between 3500 and 4500 jobs will be cut in 2009, alongside other restructuring measures.

These will be aimed at "rationalizing selling, administrative, research and development, supply chain and other business resources in certain areas and consolidating certain facilities". In addition, it has said it will waive wage increases in 2009.

These new moves are expected to save Kodak between $300 million and $350 million a year.

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