Kodak Layoffs in IT Expected By End of September
By: Caroline Tucker
Updated: September 6, 2012
Kodak has plans to shrink its IT department by the end of September.
Sources tell News 8/FOX Rochester that employees were notified on Wednesday that 30-percent of the worldwide workforce would be cut.
The total number of job losses is expected to be around 100 people in the Rochester region and another 300 worldwide.
Worldwide information systems has employees in 40 countries.
Information Systems is responsible for the technology and security of Kodak's operations and supports different Kodak businesses.
Many say it's not a surprise that these layoffs are happening.
"Although you need that for every unit of the company, as the company has gotten smaller, it's a natural consequence that WWIS would shrink with it," said George Conboy, CEO of Brighton Securities.
Kodak's Worldwide Information Systems division will lose about 100 Rochester-based workers and roughly 300 worldwide.
It operates in 40 countries.
Financial analyst George Cconboy says these cuts come as no surprise.
"Without as many businesses to serve, without as many employees and locations, Kodak needs less global infrastructure," said Conboy.
It follows Kodak's announcement two weeks ago that it would shed several business lines.
Kodak wouldn't comment on this specific layoff only saying quote:
"In the announcement about the planned sale of Personalized Imaging and Document Imaging, we noted that we would continue to make reductions in corporate costs and legacy liabilities," wrote Chris Veronda, a Kodak spokesperson.
"This is one more step in the incredible shrinking Kodak. It keeps getting smaller at the manufacturing end and everything behind it," said Conboy.
As these cuts happen, the company's patent sale still looms, with no word yet of a buyer.
Early reports showed that Kodak wasn't getting the multi-billion dollar bids it was looking for.
Conboy says no news is not good news.
He said that the timing of the recent sale of businesses shows that Kodak does not expect to sell those patents.
Kodak was expected to appear in bankruptcy court on Friday for a hearing on the patent sale, but it has been adjourned once again.
The new hearing date is for September 19.
