EASTMAN KODAK, the bankrupt inventor of the hand-held camera, plans to stop making digital cameras, pocket video cameras and digital picture frames in the first half of 2012 in a bid to cut costs.
The move marks the end of an era for Kodak, which is seen as one of the biggest corporate casualties of the digital age, after it failed to quickly embrace modern technologies such as digital photography, a product that it also invented.
The company, which filed for bankruptcy protection last month, said it will take a charge of about $30 million for the business exit, which it expects to generate annual operating savings of more than $100 million.
The company, which generates three-quarters of its revenue from digital, now plans to instead focus on seeking licensees to expand its brand licensing program. It said it will continue to offer online and retail photo printing, and desktop printers.
It said it has contacted its retail partners, and is working with them to ensure an orderly transition for the camera business.
The company promised to honour all related product warranties. – (Reuters)
