Hard on the heels of HP’s announcement that it is adding to its planned job cuts, bringing the total of jobs it plans to eliminate by 2014 to 29,000, another U.S. technology old-timer releases some dismal jobs news.
Eastman Kodak (News - Alert), which declared bankruptcy earlier this year, is saying that it will likely cut 1,000 additional jobs by the end of this year and may cut more as it focuses on its commercial packaging and printing business. Ultimately, Kodak plans to sell most of its consumer and document imaging businesses, once a profitable endeavor for the company, but now a flagging prospect due to technology changes.
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The announcement comes after a disappointment in selling off some of the company’s patents in an attempt to raise more capital. The company had estimated its existing patents to be worth between $2.2 billion and $2.6 billion, but the only bids it received fell below $500 million. Bidders included investor groups and other technology companies, including both Apple and Google (News - Alert) according to media reports.
Should more attempts at selling the patents fail, the company will need to make deep cuts in jobs in order to emerge from bankruptcy next year, as planned.
As of the end of last year, the company had about 17,100 employees. In the 1980s, it employed about 145,000 people. The company, which is based in Rochester, New York, has already reduced its workforce by about 2,700 worldwide since the beginning of 2012, and is expected to save about $330 million from these fresh job cuts.
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Edited by Brooke Neuman