Last month, Kodak filed for Chapter 11 bankruptcy protection and as part of the attempts to restructure the ailing company, it has announced today that it will cease production of all digital cameras, pocket video cameras and digital picture frames in the first half of 2012.
In a statement Kodak said it would instead be focusing on expanding its current brand licensing program and seek licensees for cameras. The company said it would take a charge of about $30 million for the business exit but expects to generate annual savings of more than $100m as a result.
“For some time, Kodak’s strategy has been 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,” said Pradeep Jotwani, President, Consumer Businesses, and Kodak Chief Marketing Officer.
The company will now focus on other areas in of the business to generate revenue, including online and kiosk printing, desktop printers, camera accessories and batteries as well as the business which the 123-year-old company is based on, traditional film capture and photographic paper business.
The company said it has contacted its retail partners, and is working closely with them to ensure an “orderly transition.” Kodak will continue to honour all related product warranties, and provide technical support and service for its cameras, pocket video cameras and digital picture frames.
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