The Five Dumbest Things on Wall Street This Week
1. Another Kodak Moment
The employment picture at Kodak (EK) keeps getting cropped.
The Rochester, N.Y., photo company took an ax to its payroll yet again this week. Kodak, which has been printing pink slips by the thousands as it sheds declining businesses, said Thursday it will cut 3,000 more jobs.
The announcement came just a week after CEO Antonio Perez celebrated Kodak's first quarterly profit in two years."I'm proud of my team," Perez said last Wednesday in announcing fourth-quarter earnings, "and their accomplishments in 2006." Team members know that just making it through a year at Kodak is a big accomplishment. Counting Thursday's firings, Kodak says its four-year digital restructuring will end up costing between 28,000 and 30,000 jobs. All those departures have taken their toll. Charges tied to the layoffs will exceed $3.6 billion. Companywide employment will decline to levels not seen since the 1930s, the Associated Press reported. None of this is keeping Perez up at night, though. "The dream," he told investors at the company's annual analyst meeting Thursday, "was that we would wake up in 2008 with the digital company that we want to have." The one with all the empty cubicles, that is. Dumb-o-Meter score: 93. "If you look in the history books, you will see this is one of the hardest transformations to do," Perez opined at the meeting.
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