Kodak layoffs spike to 425 following a disappointing Q3 earnings report that registered a $46.0-million loss.
About 100 of those will be Rochester layoffs, according to reports.
The multi-million-dollar fall comes alongside a drop of eight percent in terms of sales compared to a year ago.
“An overall print market slowdown and rising aluminum costs have impacted our commercial print business,” said Jeff Clarke, Kodak Chief Executive Officer. “We are taking immediate actions to accelerate cost reduction and reduce investments to sharpen our focus as we continue to actively pursue changes to the Kodak product and divisional portfolio.”
While the company said that some of its key product lines did see strong growth in the latest quarter, that ultimately was not enough to stave off this recent round of Kodak layoffs.
“We expect to generate cash in the fourth quarter of 2017,” said David Bullwinkle, Kodak Chief Financial Officer. “We plan to improve our cash balance through reducing working capital and through cost actions including focusing investments in technologies most likely to deliver near-term returns.”
Eastman Kodak Company (NYSE:KODK) plummeted nearly 30% following the news. The company has not had an easy 2017, with the stock down about 75% since the beginning of the year. Much of this is a result of many of the company’s key divisions floundering and unable to turn a profit, or at least, unable to grow those profits compared to past quarters.
The Print Systems Division, for instance, Kodak’s largest division, had Q3 revenues of $232.0 million, representing a decline of $18.0 million, or about seven percent compared to revenues from a year ago. The financial reports stated that the decline was primarily due to pricing pressures.
All in all, the company finds itself in a fraught territory, with major losses reported in the most recent quarter and a long trend of disappointment on the stock market, with hundreds of layoffs coming as a result of these challenges.
“Kodak looks at cutting more jobs as it reports 3rd quarter earnings,” WXII News, November 8, 2017.
“Kodak Reports Third-Quarter 2017 Financial Results,” Kodak, November 8, 2017.
“Kodak to lay off ~100 employees in Rochester,” News 10 WHEC, November 8, 2017.