Kodak to eliminate additional 10,000 jobs

CHICAGO -- Eastman Kodak Co., an icon of photography for more than a century, said yesterday it is shedding as many as 10,000 more jobs, as digital imaging devours its traditional film business at a faster-than-expected pace.

Analysts say Kodak is in a race to build sales of its digital cameras and, more importantly, its photo printers and other digital supplies. Meanwhile, sales of traditional film products are plunging faster than the company's executives had forecast.

The Rochester, N.Y., company also posted a loss for the quarter ended June 30. Analysts had expected Kodak, still the world's largest photography company, to show a small profit.

''Our disappointing start in the first half of this year makes it clear that I need to make some changes and make them now," said chief executive Antonio Perez. ''Sales of our consumer traditional products and services are declining faster than expected."

Kodak said it now expects its traditional sales to plunge 23 to 27 percent in 2005, compared with a 20 percent drop forecast in April.

The company said last year it would eliminate as many as 15,000 jobs. Those job cuts, and the 10,000 disclosed yesterday, will mostly affect the company's film business, lowering costs about $800 million a year. Kodak had nearly 55,000 employees at the end of last year.

Most of the new layoffs will affect manufacturing workers. The company did not specify what facilities would close.

That a change was needed was obvious when Kodak released its quarterly results. It lost $146 million, or 51 cents a share, in the second quarter on revenue of $3.7 billion. It said that in June digital sales exceeded revenue from traditional products for the first time. In the year-ago period, Kodak posted a profit of $136 million, or 46 cents a share, on revenue of $3.5 billion.