Eastman Kodak completely reorganized its business structure by aligning itself into two units that will absorb the company's film and photography segment and maximize its digital and print offerings, the company said in a Jan. 10 statement. The announcement comes on the heels of reports that the company may be preparing to file for Chapter 11 bankruptcy protection.
Kodak spokesman Christopher Veronda told Direct Marketing News on Jan. 6 that the pioneering photography company “has transformed [in] to a company that has a majority of its business in the commercial printing markets.”
The new structure puts all Kodak products and services into either a commercial or consumer segment that emphasizes the company's printing products and services and streamlines its traditional offerings. Kodak's two presidents and CEOs, Philip Faraci and Laura Quatela, will oversee the commercial and consumer segments respectively, the company said in a statement.
The commercial segment — which will be managed by three newly appointed presidents — will provide digital printing equipment, consumables and software to the publishing and commercial printing industries, the company said. It will also offer entertainment imaging and commercial film, which were previously part of the company's traditional film and photography segment.
The consumer segment will absorb the former Consumer Digital Imaging Group, as well as three of the traditional film and photography product lines. Kodak named CMO Pradeep Jotwani president of the consumer segment, noting in a company statement that he retains his role as CMO. In his new position as president of the segment, Jotwani will report to Quatela, who works with Faraci in Kodak's newly formed Chief Operating Office.
“As we complete Kodak's transformation to a digital company, our future markets will be very different from our past, and we need to organize ourselves in keeping with that evolution,” said Kodak CEO Antonio M. Perez in a statement. “This new structure simplifies the organization, focuses it more precisely on our consumer and commercial customers, and puts the right people in place to capitalize fully on the tremendous technological capabilities of Kodak.”
When asked if the restructuring was tied to the recent bankruptcy rumors, Veronda said that the new organizational structure "is the outgrowth of Kodak's annual internal strategic review. The management team identified a streamlined and simplified structure as a means to improve Kodak's performance now and in the future."
Veronda said no job cuts are directly tied to the announcement today, but did note that the new structure will help in the ongoing efforts to reduce administrative costs.
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