Night of the long knives at Kodak
Eastman Kodak announced today that it was cutting up to 15,000 jobs as it shifts away from the shrinking film market.
DP Review quotes a Reuters press release:
bq. Eastman Kodak Co. Thursday said it would cut as many as 15,000 jobs and take charges of up to $1.7 billion over the next three years as it works through a painful shift toward digital products and away from the waning film market.
bq. The photography company, whose shares soared to their highest level in seven months in early trading, also announced an 83 percent decline in fourth-quarter net income. However, excluding one-time charges, the profit beat Wall Street views.
bq. "Previous administrations have had problems with carrying out plans, but this is the first time that there is a level of seriousness that merits attention," said Chris Carosa, whose firm advises the Bullfinch Western New York Series Fund.
bq. However, after an investors meeting in New York, some analysts were more guarded. With Kodak set to write off so many costs -- including up to $400 million this year -- before its transformation ends in 2006, they say it will be hard to accurately judge Kodak's performance.
The have already laid off 22,000 people - it's work force has gone from 86,000 in 1998 down to 64,000 in 2003.
In perspective, Microsoft has about 50,000 people working at it's Redmond, WA location and it's 4th quarter income for 2003 was $10.15 Billion
Kodak's was $19 Million for the same 4th quarter.
Microsoft stock prices
here
Kodak stock prices
here
Posted by DaveH at January 22, 2004 3:37 PM