Kodak closing camera division
Cost-cutting move comes after entering bankruptcy protection last month
Kodak says it will leave the industry that it created by closing its camera division as it attempts to rebuild under bankruptcy protection.
The Rochester, N.Y.-based company says it will stop making digital cameras, pocket video cameras and digital picture frames in order to focus on its more profitable businesses.
Kodak says it will phase out the cameras and digital frames in the first half of this year, and its consumer division will focus solely on photo printing and desktop inkjet printers.
The move will cost Kodak $30 million US, but save $100 million annually.
Eastman Kodak Co. filed for Chapter 11 bankruptcy protection last month after it failed to sell a group of 1,100 patents that would have provided the company with a much-needed cash infusion. It hoped to receive billions from the patents, but was unable to find a buyer.
The company has yet to announce any layoffs as a result of the bankruptcy filing, although the company's payroll has fallen to 19,000 from over 70,000 a decade ago.
Kodak says it's working with its retailers to ensure an orderly transition. The company will continue to honour product warranties and provide technical support for the discontinued products.