NEW YORK (Reuters) - Eastman Kodak Co. said
Thursday it plans to cut 200 senior and mid-level
management jobs, about 20 percent of its managerial
workforce, in the next few weeks.
The cuts were disclosed in an internal memo
issued to employees by Chief Executive George
Fisher just a week after the company warned that its
third-quarter results would fail to meet Wall Street's
expectations.
The memo said: "The first tangible action will be
the upcoming reduction of more than 200 senior and
middle management positions ... We have decided to
reduce our ranks by about 20 percent to streamline
operations."
The memo didn't mention the possibility of
broader layoffs, and was short on other cost-cutting
details. But a spokesman told CNNfn that the cuts
will clearly number in the thousands.
Kodak has about 95,000 employees in all,
including 1,000 managers.
The film and photo equipment giant said cost cuts
will include eliminating "infrastructure" in some final
assembly operations in equipment making, and
consolidating in those units.
Kodak, struggling with competition from rival Fuji
Film Co. and the effects of the strong U.S. dollar,
said Sept. 15 it would significantly reduce its cost
structure, sell non-strategic units and eliminate money
losing operations.
A spokesman for the company told Reuters the
elimination or the consolidation in its equipment
making operations could lead to the complete or
partial closings of those plants.
The spokesman said the memo, provided to
Reuters, was intended to be a "framework" for senior
management as cuts are disclosed in the coming
weeks and months.
The memo said overall cost cuts will not be
across the board, but "highly targeted."
The spokesman said, for example, Kodak may
rely on outside suppliers to provide equipment
components, instead of Kodak making virtually all
the equipment to make an end product.
The memo also said Kodak will seek cost
reductions in "sensitized goods manufacturing," such
as film making, through productivity gains and
improvements in quality and cycle time.
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