Layoffs Hit Kodak After Millions in Losses

Sometimes you can’t keep a good thing down but that doesn’t necessarily mean the future is always bright and the road ahead will be smooth, as Kodak is now discovering.

After reporting a $USD 15 million profit for the third quarter of fiscal 2016, the iconic film maker is now reporting a loss of $USD 46 million on $USD 379 million in revenue for third quarter 2017.

Kodak's Chief Executive Officer Jeff Clarke said in a press release that the downturn was mainly attributed to a slowdown in its print business, “An overall print market slowdown and rising aluminum costs have impacted our commercial print business.”

In response to the loss, Clarke outlines a plan for the company to cut costs and return to the black, mainly by cutting 425 jobs and focusing on the firm’s profitable Kodak Sonora Plates and Flexcel NX.

Kodak’s Chief Financial Officer predicts a return to profitability in fourth quarter 2017, saying “We plan to improve our cash balance through reducing working capital and through cost actions, including focusing investments in technologies most likely to deliver near-term returns.”

New York Upstate outlines Kodak’s challenges as combating a decrease in siles in the commercial print industry coupled with higher costs that directly affect the Print Systems Division, Software and Solutions Division, and Enterprise Inkjet Systems Division. Also, a transitional period for vendors in the Kodak brand licensing plans have led to decreased performance in the Consumer and Film Division.

Last, Kodak has faced challenges in its attempts at introducing Advanced Material and 3D Printing Division products to the market.

Kodak’s current corporate model relies on commercial licensing of camera products as well as providing high-grade printing materials and equipment, two sectors increasingly under pressure as higher-end smartphone and cameras capture much of the profitable market and the commercial printing sector facing similar pressures.