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Eastman Kodak Co. on Monday said it plans to cut 1,000 more jobs by year’s end. In addition, two top executives, President Philip Faraci and Chief Financial Officer Antoinette McCorvey, are leaving the firm.
Chairman and CEO Antonio Perez said the changes and cost-structure reductions reflect Kodak’s strategic focus on the commercial, packaging and functional printing solutions and enterprise services business, as well as the planned sales of its personalized imaging and document imaging businesses.
“Kodak is becoming a more focused and competitively scaled company,” Perez said in a statement. “We recognize that we must significantly and expeditiously reduce our current cost structure, which is designed for a much larger, more diversified set of businesses.
“We are reorganizing our senior management team,” he added, “an action that will help accelerate the creation of a sustainable cost structure for operating our business for the benefit of our customers and position our personalized imaging and document imaging businesses for successful sales.”
Kodak said it is making progress in the operational restructuring necessary for the separation of its three businesses and the consolidation of its corporate structure. The company last month announced it planned to sell its personalized imaging and document imaging businesses.
Since Jan. 1, Kodak has reduced its workforce by roughly 2,700 employees worldwide; at that time, it employed 17,081 people. Kodak expects to reduce its workforce by an additional 1,000 employees this year. Officials declined to break the cuts down by region or site.
The annualized savings generated by the 3,700 headcount reductions, including compensation and benefits, is some $330 million. An analysis of further operational and workforce reductions is under way, the company said.
Kodak also provided additional details on its new management structure. The commercial, packaging and functional printing solutions and enterprise services business primarily will include the digital printing and enterprise and graphics, entertainment and commercial films units.
Douglas Edwards, president of the digital printing and enterprise unit, and Brad Kruchten, president of the graphics, entertainment and commercial films unit, will report directly to Perez.
Perez noted that as chief operating officer, Faraci played an important role in helping transform the company. Faraci will stay on for a transition period, Kodak said.
“We wish Phil Faraci well,” Perez said. “Kodak and I both owe Phil a debt of gratitude for his outstanding contribution. … Phil and I have agreed that our management team must be scaled and aligned with the future size and structure of the business.”
Rebecca Roof, a managing director of AlixPartners, Kodak’s restructuring advisory firm, will become interim CFO. Kodak said Roof has served in similar capacities for other companies that have successfully emerged from Chapter 11 restructurings.
As CFO, McCorvey played an important role in putting Kodak on the path to emergence, Perez said.
Kodak president Laura Quatela will assume the additional role of president of personalized imaging. Dolores Kruchten will become president of document imaging. Quatela and Kruchten are expected to remain with Kodak until the sales of those businesses in the first half of 2013.
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