Financially troubled photography giant Kodak announced a new restructuring program this week, safeguarding the jobs of some 1,000 employees at its Guadalajara plant, at least for the time being.
Reports had suggested Kodak was preparing to file for Chapter 11 bankruptcy after no buyers had come in with bids for a slew of digital-imaging patents.
Under the new structure, Kodak has reduced its number of segments from three to two, eliminating its group dedicated to traditional film and photo paper products.
Kodak has suffered for reacting too slowly to the digital revolution. Shares fell by 80 percent in 2011 and the company has not posted a profit since 2007. Although the company’s stock rose by 45 percent Tuesday after the restructuring news, its price dropped to an all-time low of 36 cents last week.
The new model will “increase productivity, reduce costs and accelerate its transformation into a digital company that delivers sustainable profitability and creates value for its stakeholders,” Antonio M. Perez, Kodak chairman and chief executive officer, said in a press statement.The future of the Kodak plant in Guadalajara, which opened in 1970, remains in limbo. The plant manufactures one-time-use traditional film-based cameras, as well as X-ray material, 35-millimeter film and a range of graphic arts materials.
Although Perez had stated that the restructuring program would not involve layoffs, sources at the Guadalajara plant told local daily Mural that workers were fired in 2010 due to drops in production, including 60 in December.
The workforce in Guadalajara now numbers around 1,000, a far cry from the 3,000 when the plant was at its peak.
In September 2008, Kodak put its 40-hectare Zapopan plant on Avenida Mariano Otero up for sale but vowed not to abandon the city and relocate to other premises. A buyer for the facility has not been found, however.
According to Manuel Herrera Vega, coordinator of the Jalisco Industrial Chambers, there are agreements in place with other high-tech firms in the state that will help absorb any job losses at Kodak.