Kodak said the exit – announced last week – was expected to result in a US$30 million charge, including US$20 million in cash expenditure and US$10 million in the form of “special termination benefits from the company’s defined benefit pension plans”.
Adrian Fleming, managing director of Kodak Australasia, said the move would have not directly impact the local operation.
“Kodak Australasia will continue to operate as usual, with our consumer business now focusing predominately on online and retail-based photo printing services,” he said.
“Our commercial printing business continues to prosper and will be a large focus area for Kodak Australasia going forward.
“Kodak Australasia employees will not be impacted by this announcement and it is business as usual for Australia and New Zealand.”
The decision, which was heralded last month when the company listed its digital camera business among the non-core areas that would be “managed for cash/value”, forms part of the Kodak’s ongoing restructuring programme.
Pradeep Jotwani, chief marketing officer and Consumer Business president, said Kodak’s longstanding aim was to “improve margins in the capture device business by narrowing our participation in terms of product portfolio, geographies and retail outlets”.
“Today’s announcement is the logical extension of that process, given our analysis of the industry trends,” he added.
Upon completion of the phase-out, Kodak’s Consumer Business will include retail-based photo kiosks and digital dry labs, consumer inkjet printers, online products such as the Kodak Gallery and Facebook apps, universal camera accessories and batteries, and the traditional film capture and photographic paper business.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at [email protected]
Sign up to the Sprinter newsletter