Polaroid to Cut 11% of Staff, Sees $90 Million Pretax Charge

Polaroid (PRD Quote) is planning a restructuring initiative that will result in the elimination of about 950 jobs, or 11% of the company's global workforce, and lead to a pretax charge of $90 million in the first quarter.

The instant film and camera maker expects to complete the restructuring program in about 12 months. Polaroid said the move should help the company save about $60 million on an annualized basis.

Shares of Polaroid, which is based in Cambridge, Mass., ended the New York Stock Exchange session at $5.62, down 9 cents, or 1.6%.

Earlier this month, Polaroid suspended its regular quarterly dividend of 15 cents, shortly after posting a fourth-quarter loss of $5.9 million, or 13 cents a share, on sales of $506.2 million.

The first-quarter charge will include $60 million for severance costs and $30 million to write off fixed assets.