Fears for UK jobs as Kodak takes axe to 16,000

Kodak, the US photographic giant, yesterday stunned its workforce by announcing plans to cut another 6,600 jobs, on top of 10,000 already announced last month, in a $1.5bn (pounds 915m) restructuring drive.

The news from the group, which is the world's largest producer of photographic film with 40 per cent of the market, raised the prospect of further jobs losses from its 5,000 strong British workforce. A US spokesman said most countries would be hit. "It would be fair to say the impact of this will be felt everywhere," he said, though there were no details of the regional breakdown.

Last month Kodak said it would cut 10,000 jobs worldwide, to save $1bn, in the face of tough competition from Japanese rival Fuji. But yesterday the company revealed that the programme would see 16,600 job losses by 1999 out of a global workforce of 100,500.

Kodak employs about 1,000 people at its base in Hemel Hempstead in Hertfordshire and 2,000 in Harrow, north-west London, where the group makes colour photographic paper. A further 600 staff are based at Annesley in Nottinghamshire and Kirby on Merseyside. The group's British operations made sales of pounds 1.3bn last year and profits of pounds 131m.

Previous restructurings have already taken their toll on Kodak's UK operations, where staff numbers have fallen from 8,400 to 5,000 since 1992. Part of the drop came when Kodak sold its UK photocopier business, employing 1,200 staff, to Danka. The global reductions are on top of 2,500 job cuts still to come from a previous restructuring package announced late last year and another 800 revealed earlier this year. Kodak said it would take a $1.5bn restructuring charge to fund the latest programme, half of which would cover redundancy payments.

Kodak's problems intensified this summer when Fuji slashed the US price of colour camera film by 20-30 per cent for some retail chains, in a concerted attack on the domestic market of its arch rival. Meanwhile, the US group has been preoccupied with new forms of digital photographic technology.

Last night Kodak shares, which had almost halved this year on the setbacks, rose by 5 per cent on Wall Street as analysts predicted a quicker improvement in profitability.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Mortgage Administration Team Leader

Negotiable: Recruitment Genius: This company prides itself on its ability to p...

Recruitment Genius: Mortgage Advisor

Negotiable: Recruitment Genius: This company prides itself on its ability to p...

Ashdown Group: Solvency II Project Manager - 10 month contract - £800 p/d

£800 per day: Ashdown Group: A highly successful, global financial services co...

SThree: Trainee Recruitment Consulant

£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250...

Day In a Page

Mullah Omar, creator of the Taliban, is dead... for the fourth time

Mullah Omar, creator of the Taliban, is dead... again

I was once told that intelligence services declare their enemies dead to provoke them into popping up their heads and revealing their location, says Robert Fisk
Margaret Attwood on climate change: 'Time is running out for our fragile, Goldilocks planet'

Margaret Atwood on climate change

The author looks back on what she wrote about oil in 2009, and reflects on how the conversation has changed in a mere six years
New Dr Seuss manuscript discovered: What Pet Should I Get? goes on sale this week

New Dr Seuss manuscript discovered

What Pet Should I Get? goes on sale this week
Oculus Rift and the lonely cartoon hedgehog who could become the first ever virtual reality movie star

The cartoon hedgehog leading the way into a whole new reality

Virtual reality is the 'next chapter' of entertainment. Tim Walker gives it a try
Ants have unique ability to switch between individual and collective action, says study

Secrets of ants' teamwork revealed

The insects have an almost unique ability to switch between individual and collective action
Donovan interview: The singer is releasing a greatest hits album to mark his 50th year in folk

Donovan marks his 50th year in folk

The singer tells Nick Duerden about receiving death threats, why the world is 'mentally ill', and how he can write a song about anything, from ecology to crumpets
Let's Race simulator: Ultra-realistic technology recreates thrill of the Formula One circuit

Simulator recreates thrill of F1 circuit

Rory Buckeridge gets behind the wheel and explains how it works
Twitter accused of 'Facebookisation' over plans to overhaul reverse-chronological timeline

Twitter accused of 'Facebookisation'

Facebook exasperates its users by deciding which posts they can and can’t see. So why has Twitter announced plans to do the same?
Jane Birkin asks Hermès to rename bag - but what else could the fashion house call it?

Jane Birkin asks Hermès to rename bag

The star was shocked by a Peta investigation into the exotic skins trade
10 best waterproof mascaras

Whatever the weather: 10 best waterproof mascaras

We found lash-enhancing beauties that won’t budge no matter what you throw at them
Diego Costa biography: Chelsea striker's route to the top - from those who shared his journey

Diego Costa: I go to war. You come with me...

Chelsea's rampaging striker had to fight his way from a poor city in Brazil to life at the top of the Premier League. A new book speaks to those who shared his journey
Ashes 2015: England show the mettle to strike back hard in third Test

England show the mettle to strike back hard in third Test

The biggest problem facing them in Birmingham was the recovery of the zeitgeist that drained so quickly under the weight of Australian runs at Lord's, says Kevin Garside
Women's Open 2015: Charley Hull - 'I know I'm a good golfer but I'm also just a person'

Charley Hull: 'I know I'm a good golfer but I'm also just a person'

British teen keeps her feet on ground ahead of Women's Open
Turkey's conflict with Kurdish guerrillas in Iraq can benefit Isis in Syria

Turkey's conflict with Kurdish guerrillas in Iraq can benefit Isis in Syria

Turkish President Erdogan could benefit politically from the targeting of the PKK, says Patrick Cockburn
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn or a return to a Labour government

Our choice is years of Tory rule under Corbyn or a return to a Labour government

Yvette Cooper urged Labour members to 'get serious' about the next general election rather than become 'a protest movement'