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Kodak to Drop 1 of Every 10 Jobs in Cost-Cutting Bid

February 11, 1986|Associated Press

ROCHESTER, N.Y. — Eastman Kodak Co. today announced it is eliminating one of every 10 jobs at its plants around the world.

Henry Kaska, spokesman for the giant photographic firm, said the cutbacks will do away with 12,000 to 13,000 jobs internationally.

He said Kodak has 128,950 employees worldwide, including 89,100 in the United States.

Included in the cutbacks, he said, are 500 Rochester-area jobs that were eliminated Jan. 17 and an additional 700 announced today.

"Through the first three quarters of 1985, Kodak earnings declined 27%, reflecting unfavorable rates of currency exchange . . . and substantially higher costs associated with competitive conditions and product development," he said.

"It is now clear that fourth-quarter results were affected even more substantially by these factors." Kaska declined to comment further on fourth-quarter results, except to say they will be released next Tuesday.

Kodak's cost-cutting effort will result in a 5% budget reduction and the elimination of 10% of Kodak jobs worldwide in 1986 by doing away with low priority jobs, Kaska said.

The program also will eliminate 1986 salary increases for 130 top management officials, including corporate officers.

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