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Kodak plans to lay off more workers this fall

Eastman Kodak Co. has notified the state Labor Department that it plans to lay off more than 50 workers at its plant in Eastman Business Park in November. The move is the latest layoff planned by Kodak as it works to eliminate as many as 4,500 jobs worldwide this year. 

Kodak, which finished last year with 24,500 workers, including 8,500 in Rochester, had eliminated 2,100 positions this year through June 30. It has since notified the state of four additional downsizings this fall, the largest involving 54 workers from Nov. 16 to Nov. 23 at a facility at 1999 Lake Ave. 

The ongoing cuts are part of specific actions the company said it would take to strengthen operations and become more competitive in the face of the global economic downturn, a spokesman said this week. He declined to detail the type and scope of jobs being eliminated in individual moves. 

Kodak committed to the 2009 restructuring on Dec. 17, 2008. In January it announced the plan to reduce the company’s size as a result of the global economic slowdown, which began in 2008 and hammered it in the third and fourth quarters last year. 

Kodak expects to incur total restructuring charges of $250 million to $300 million, including up to $265 million in cash-related charges for termination benefits and other exit costs. 

Company leaders said Kodak incurred $46 million in restructuring charges in the second quarter and a total of $162 million for the first half of the year. The company made restructuring-related payments from corporate cash of $55 million in the second quarter and $103 million for the first half. 

Kodak eliminated some 550 positions during the second quarter, bringing total reductions to approximately 2,100 for the 2009 cost-reduction program. When combined with the actions from the fourth quarter of 2008, total reductions are roughly 3,700, the company said. 

According to filings with the state, the other planned reductions-affecting a total of 23 jobs-are:
    –eight workers at Eastman Business Park, 1669 Lake Ave., to occur from Oct. 29 to Nov. 8;
    –two workers, including one telecommuter, at Kodak headquarters on State Street, Oct. 19 to Oct. 28; and
    –13 employees at Kodak headquarters, with two layoffs from Sept. 21 to Sept. 30 and 11 layoffs from Oct. 1 to Oct. 11.
    mdickinson@rbj.net / 585-546-8303

09/11/09 (C) Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303.

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