Kodak To Shed Jobs in Gates and Dayton
By: Caroline Tucker
Updated: February 7, 2012
Kodak is cutting jobs.
It's the first sizable layoffs since the company filed for bankruptcy in January.
Kodak confirms that as many as 160 employees will lose their jobs in the Rochester-area and in Dayton, Ohio.
It includes about 80 employees in Dayton and about 80 employees at Kodak's Manitou Road site in Gates.
"We are seeing 1's and 2's all across the company wherever they can, cutting back staff," said George Conboy, Brighton Securities.
Financial analyst George Conboy has already heard about Kodak layoffs.
But now much larger cuts are coming.
"You are going to see Kodak go aggressively after labor costs in many of their businesses, probably all of their businesses," said Conboy.
On Monday, employees got word in Ohio that Kodak's digital printing systems unit would lose workers.
That's about 16-percent of the workforce there.
"It's possibly Kodak has been taking a careful look at finding out if can do more with less, fewer employees for example," said Conboy.
The same unit in Rochester is also going to lose dozens of its staff.
The unit makes digital printing presses for businesses .
Commercial printing has become a larger focus for Kodak.
"I don't think we can jump to the conclusion that any layoffs in any area is indicative of the business strengths," said Dennis Mullen, The Mullen Group.
Business analyst Dennis Mullen, The Mullen Group, says layoffs are expected in bankruptcies, especially since Kodak has less than $1 billion in cash.
It received debtor-in-possession financing from Citigroup before it filed.
"The organization is going to be challenged going forward," said Mullen.
That will likely mean more layoffs.
"Hopefully internal communication to the employees is done in a professional way," said Mullen.
Kodak says job cuts will make those businesses more profitable, which experts say is possible.
"Just because a business is seeing employment cuts doesn't mean a business can't grow," said Conboy.
The layoffs are expected to take place sometime within the month.
