Kodak Cuts 900 Jobs

Kodak (EK Quote) will cut 900 jobs, about half of them in the company's hometown of Rochester, N.Y., as it continues its fight against the accelerating decline in demand for consumer film and photographic paper.

Last month, the company said it expected to fire 22,500 to 25,000 workers as part of a broader restructuring. The company had originally planned to shed 15,000 employees.

Kodak plans to close an operation in Rochester by the end of October and consolidate color photographic paper manufacturing for North America at plants in Windsor, Colo., and Harrow, England.

By the end of the year, the company will close an operation in Rochester that recycles polyester waste and part of a division that processes polyester raw material in manufacturing Estar polyester film base. Additionally, Kodak plans to reduce the manufacturing capacity for consumer film at its plant in Xiamen, China.

The company will record charges of $153 million as a result of the moves.

"These actions are regrettable because they impact our Kodak people whose performance has been outstanding, but they are necessary in light of the accelerated declines in consumer film and paper," the company said in a press release. "We will continue to move aggressively to competitively position our operations and adjust our manufacturing footprint and capacity for the marketplace realities."

Shares of Kodak were down 7 cents to $24.97.