Kodak announces its exit from Inkjet printer business
The Eastman Kodak, which had formally filed for bankruptcy in the beginning of this year and now works under the protection provided by Chapter 11, Federal Bankruptcy Code has made some announcements as part of its reconstruction plan.
One of the major decisions taken by the company is its complete pullout from the consumer printing business. The company officially announced that it would shut the sales of its inkjet printers in the consumer market. However the sale of cartridges for the installed base shall continue.
The company also declared that it, "remains committed to its significant installed base of consumer inkjet printer customers and will provide its customers and retail partners the same level of service and support they have come to expect from Kodak."
The company expects this major measure to not only improve the cash flows but also help the company in emerging as a profitable and sustainable company in the beginning of 2013.
The current decision also implies a job cut of 1,200, a substantial increase from 1,000 which was earlier declared by the company. This would mean a total job cut 2,700 since its last and shall bring down the work-power of the company down to 13,100 people.
However the company estimates reckon that these job cuts and decisions will help the company in saving around $340 million in costs per year.
The company's current decisions are a part of a larger strategy aimed at turning itself into a company specializing in enterprise services and commercial printing.