Kodak Announces Restructuring Plan

Major changes are happening at Kodak.
 
On Tuesday, the company announced it's rethinking the way it does business.

Kodak plans to reduce its segments from 3 to 2, now named the Commercial segment and the Consumer segment.

The heads of both of those groups will report to Chairman and CEO Antonio Perez.
 
Kodak says the organization is important in their evolution to digital products, to reduce administrative costs and improve efficiency.

Rochester, NY - The plan began taking shape on the first of the year.
 
It's a restructuring that Kodak claims will deliver long term profits and value for its stakeholders, while carrying it into the digital age.
 
George Cook is the Executive Professor of Marketing at the Simon School of Business. He says restructuring is a common step taken by companies in trouble, and recently seen at Sears and GM.
 
Cook spent 30 years working for companies like Ford and Xerox, and knows what it takes for Kodak to survive.
 
"They have a rich history and we only hope that they can return to that prominence that they were prior to the current day"

However, the restructuring can't be Kodak's only effort.
 
Cook says the company also needs to keep pace with leaders in the technology market.
 
"It's an absolute challenge to gain the number one spot in the economy and maintain that spot over time because you have competitors coming in all the time."

The company is trying to keep that competition going.
 
We spoke with Kodak's Worldwide Products Manager for Wireless Cameras at the Consumer Electronics Show in Las Vegas via satellite, as the company debuted their latest Wi-fi enabled products.
 
We asked what they would say to customers who may hold back their dollars due to the company's uncertainty.
 
Hal McClennan said "Yeah, there's lots of speculation. What I would say is 'we're here generating new products, showing our customers that we're delivering the great ease of use that you can expect, the great performance of our products, and the trust and reliabilty that weve always stood for and we always will stand for.'"

News 8 also directed questions to Kodak's Rochester office, to find out if restructuring could be a pre-cursor to a possible bankruptcy filing.
 
Those rumors have been circulating in recent weeks amid plunging stock values.
 
Spokesman Christopher Veronda said the restructuring plan has been underway since the company's annual review, and that he would not comment on quote "market speculation".
 
Cook believes the rumors may have been a motivating factor to get the company on the right track, but it doesn't necessarily mean bankruptcy is looming.
 
"I'm a believer that they have the expertise and background and history that they can bring this to a successful conclusion."