Eastman Kodak

(EK)

said it began implementing cost reductions it announced in October, including cutting as many as 1,700 jobs worldwide and closing two manufacturing plants, in order to save $200 million annually.

Recently, shares of the company were up 1.6% at $34.03 on the news.

About 2% of Kodak's 75,000-strong workforce will be affected. The company said it will cut 150 research and development jobs in the U.S. "to keep its research portfolio aligned with changing market conditions."

Kodak said it will close its one-time-use camera manufacturing plant in Rochester in July, and production will move to other plants in China and Mexico. This will affect 500 positions.

The company also will shut down its sensitizing operation in Mexico in April, which will affect 300 positions. The products made there will be transferred to other U.S.- and England-based plants. "The sensitizing operation in Mexico is being closed because of worldwide overcapacity in the imaging industry for manufacture of graphics arts films, which results from technology changes in the printing industry," Kodak said in a press release.

Kodak said it will also "realign and streamline the global manufacturing and logistics organization, resulting in the reduction of about 400 management and staff positions worldwide. It also will reduce about 150 other positions in global manufacturing and logistics units at its Kodak Park location.

The company said it will work with the 1,300 to 1,700 affected employees to redeploy them in other businesses that are growing in the company or provide compensation for employees that leave the company permanently.

Our premium content on RealMoney.com is FREE for TODAY ONLY, Tuesday, Nov. 12!

Click here

to check it out.