Kodak insolvency costs 3700 employees their jobs

Kodak insolvency costs 3700 employees their jobs

Kodak had filed for insolvency in january. The pioneer of photography is being severely affected by the transition to digital technology. Even before the bankruptcy, some 47,000 jobs had been cut and 13 factories closed since 2003. Last year, the company still employed around 17,000 people.

"We have recognized that we need to reduce our cost base significantly and tensely," now explained company boss antonio perez. He wants to reposition kodak as a printing specialist. The roots of the company cut radically. Perez parts with photographic films, cameras or scanners. The competition, especially from asia, had proved too strong.

So far, however, the reconstruction has hardly been successful and high losses have been incurred. Perez is now trying to turn things around with a new management team. The president philip faraci and the chief financial officer antoinette mccorvey leave the company. She is followed by rebecca roof from the consulting firm alixpartners, which is supporting kodak in its hoped-for relaunch.

In the first half of the year, sales shrank by more than a quarter to 2.0 billion dollars and the loss increased to 665 million dollars. But already next year the company wants to be in the black again.

The new start is also to be financed by the sale of the rich patent arsenal for digital photography, which kodak also helped to shape in its early days. However, there are indications that kodak can expect considerably less money than the estimated 2.6 billion dollars. The auction should actually have been completed weeks ago.

At kodak, the end of the 19th. Photographic film was invented at the beginning of the twentieth century. The company then turned photography into a mass market with inexpensive cameras and raked in rich profits until the advance of digital images thwarted its business model.

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