Kodak Canada Inc. announced that it is shutting down its Toronto, Canada manufacturing plant in 2005, eliminating 360 jobs.
Kodak said the closure is part of a 3-year global restructuring by parent Eastman Kodak Co. to pare between 12,000 to 15,000 jobs and reduce a third of its operating space. The announced cuts will leave about 550 people at the Canadian subsidiary's headquarters, mainly in sales, marketing, service, and customer support.
The transition from analogue to digital photography has forced Kodak to slash its payroll. In January, when it employed nearly 64,000 people, the company announced plans to cut up to 15,000 jobs by 2007.
In its most recent quarter, Kodak reported sharply higher third quarter profits, helped by the sale of a remote sensing business and gains in digital photography. The company earned U.S. $479 million, or $1.67 a share, in the July to September period, up from $122 million, or $0.42 a share, in 2003.
Sales of film, one-time-use cameras, and other traditional products dropped 20 percent in the quarter, more steeply than expected, and Kodak said film industry volumes could decline as much as 20 percent in all of 2005. Sales of all digital products in the third quarter increased 39 percent while revenue from the traditional photo market fell 13 percent. Worldwide sales of consumer digital cameras and accessories rose 41 percent, matched by a 41 percent surge in revenues from photo kiosks and related products.
Earlier this fall, Kodak told investors it remained on course to increase revenues from $13.3 billion last year to $16 billion in 2006. Now, the company said it expects digital sales to increase 36 percent a year between 2003 and 2007, compared with an earlier projection of 26 percent annual growth. (Canadian Press)
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