News

Kodak to cut jobs, leave photo kiosk division alone

July 23, 2003

AUSTIN, Texas -- Eastman Kodak Co. announced it will cut as many as 6,000 jobs worldwide, but it will likely leave alone newly purchased Applied Science Fiction Technologies Inc., which will speed Kodak's efforts in photo kiosks.

Applied Science Fiction's proprietary rapid film processing technology, called Digital PIC, will affect Kodak's advances in the photo kiosk market, Kodak officials said at the time of the sale. See related story, "Kodak buys Applied Science Fiction's assets; key to photo kiosks."

Digital PIC processes film without using chemicals. The process produces digital image files that can be used to print photographs and write images on a CD, according to a news report in the Austin Business Journal.

According to the report, Kodak spokesman Charlie Smith said he doesn't anticipate any changes at the Austin division, because that location handles technology development. Kodak purchased the division in June 2003.

Administrative, manufacturing and research employees, 6 percent to 9 percent of the company's workforce, will be affected by the layoffs, according to Kodak.

Kodak expects to generate annual savings of $300 million to $400 million from the new reductions, with $275 million to $325 million expected to be realized in 2004, according to Kodak. See related story, "Kodak cuts in half profit estimate for Q2."

The article said Applied Science Fiction was formed in 1995 as a spinoff of Armonk, N.Y.-based IBM Corp.