When Eastman Kodak emerges from bankruptcy -- the goal is early 2013 -- the company will be smaller on all fronts: The size of the global workforce will have been slashed some 20% to well below 14,000, including a stable of executives with six-figure salaries.
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Gone will be a host of businesses ranging from massive digital printing presses to souvenir photos of amusement park patrons on roller coasters. What will remain is a few core businesses with enough revenue to keep Kodak in business.
The anticipated structure of post-bankruptcy Kodak has been changing rapidly in recent weeks. In August, the company filed a tentative business plan with the U.S. Securities and Exchange Commission that had operations such as retail photo kiosks and still camera film remaining. That already has changed.
On Monday, the printing and imaging company said it anticipates cutting 1,000 jobs by year's end, related to previously announced plans to sell its personalized and document imaging businesses.
Those cuts come atop 2,700 already eliminated so far this year. Spokesman Christopher Veronda said the layoffs will occur across the company. He did not specify the impact on Rochester, where employment has dwindled to fewer than 5,000. The company said it expects to save $330 million from employee cuts.
A new round of job cuts and management departures, coming eight months after the company filed for bankruptcy protection, seems to indicate "a little chaos in this Chapter 11" with company revenues coming in less than expected, said Van Conway, CEO of New York-based turnaround and restructuring consultant Conway MacKenzie.
Co-President Philip Faraci's job is being eliminated, and Chief Financial Officer Ann McCorvey has decided to leave. Other high-level departures will happen as business units are sold, the company says. Faraci, who had been with Kodak for eight years, the last five as president, oversaw the digital printing and enterprise operations.
"You swap out two senior people, thatâ??s not totally unusual, but you prefer that not to happen," especially given the important nature of the CFO position, Conway said. "That means thereâ??s disagreement on strategy."
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SOURCE: USA Today