Kodak...

[P3D Eric Goldstein <egoldste@xxxxxx>]

Thursday September 25 6:57 PM EDT 

FOCUS-Kodak says to cut 200 management jobs

NEW YORK, Sept 25 (Reuter) - 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. 

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. 

Kodak's stock, which was battered after its earnings warning, added 81
cents to close at $62.44 on the New York Stock Exchange.

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Addendum - London closed down 3/4 last night on speculation that the
restructuring did not go far enough...  eg


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