Kodak announces plans to cut up to 15,000 jobs

US giant, the Eastman Kodak company, have announced plans to cut up to 15,000 jobs worldwide over the next three years.

The company plans to reduce total facility square footage by about one-third on the back of recent initiatives to consolidate operations and dispose of surplus assets resulting from the consolidation.

In order to implement these changes, Kodak said that it will reduce worldwide employment by around 20% - axing up to 15,000 jobs – during the next three years. Kodak said that it will offer severance packages and outplacement services to those affected.

Antonio Perez, President and Chief Operating Officer of Eastman Kodak, said: “These plans are the consequence of market realities, and they will help us to fund a future for Kodak of sustainable, profitable growth. They are absolutely required for Kodak to succeed in traditional markets as well as the digital markets to which our businesses are rapidly shifting.”

Kodak remains the leading provider of online photo finishing services and seller of photo kiosks worldwide.

But increasingly the success of Kodak reflects, in part, the ongoing shift of resources to digital products and services, mirroring increased customer preference for digital technology.

Almost four-fifths of Kodak’s research development budget will be spent on digital equipment, services and media by 2006, compared with the current two thirds, as the balance shifts away from the company's traditional imaging products and services.

Also today, Kodak reported worldwide sales of $3.778 billion in the fourth quarter of 2003 – an increase of 10% from $3.441 billion in the fourth quarter of 2002. Excluding foreign exchange rates, this is a rise in sales of 4%.

(KMcA)