Restructuring. Streamlining. Strategic reorganizing. Whatever term a company chooses, the implication for employees is the same – job losses. This reality is no different for staff of the Eastman Kodak Company. This week, the well-recognized film supplier reported a drop in net earnings of US$139 million in first quarter 2001 from first quarter 2000. In addition, sales were down by 1% and earnings from operations dropped by $194 million compared to the same period last year. The company simultaneously announced a plan to restructure, which will result in the elimination of 3,000 to 3,500 positions worldwide (4.5% of Kodak’s 78,400 employees).
A spokesperson for Kodak said that the company has not yet determined what areas of the business will be targeted for layoffs, conceding only that it will be considered strategically.
In light of the first quarter results, chairman and ceo Daniel Carp announced the withdrawal of Kodak’s previously announced full-year guidance of $4.50 to $4.90 per share. He added that the expected second quarter results are in the $1 to $1.30 per share range.