New York, NY- Kodak announced they will shuffling around executives and plan to let 1,000 employees go in an effort to emerge from Chapter 11 bankruptcy.
Eastman Kodak Inc. already cut approximately 2,700 employees worldwide soon after the company filed for bankruptcy earlier this year. In a regulatory filing, Kodak estimates that the job cuts will save the company $330 million, according to the Washington Post.
In a statement, CEO and Chairman Antonio Perez said, “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.”
On Monday, the company announced that President Philip J. Faraci and Chief Financial Officer Antoinette P. McCorvey will be leaving their posts.
Kodak plans to emerge from Chapter 11 in 2013, and will no longer be producing digital cameras, pocket video cameras, or digital picture frames.
After bankruptcy, Kodak will have three main business sectors, Digital Printing and Enterprises; Graphics, Gaming and Commercial films. The company wishes to sell units, Personalized Imaging and Document Imaging.
In addition to selling business units, Kodak will liquidate numerous patents in order to satisfy creditors
At their height, Kodak employed 150,000 people worldwide, but began losing business to Japanese companies like Nikon and Canon, who pioneered digital photography. Although Kodak broke new ground in the world of photography by making film affordable for amateur photographers, they were not able to keep up in the digital age.
Businesses in the face of demise find that it takes the expertise of a bankruptcy attorney to help them come up with a plan to relieve their debts and satisfy creditors. With the right plan, a business can emerge from bankruptcy with better finances.
