Kodak drops production of digital cameras

by Steven Mostyn - Feb 15 2012, 12:38

2012 is going from bad to worse for once-dominant imaging pioneer Kodak. After recently filing for bankruptcy protection, the floundering company has now announced its decision to abandon major manufacturing aspects of its portfolio.

According to Eastman Kodak, it will begin phasing out production of digital cameras, pocket video cameras and digital picture frames before the latter part of the year in an effort to radically restructure its business.

With Kodak hoping to license its brand to other manufacturers where those products are concerned, its primary focus going forward will be centered on profitable lines such as home printers, commercial inkjet printers, and workflow software.

Although some of its major product lines are to be dumped, Kodak has moved to reassure existing customers that all warranties and tech support services will remain in place for its discontinued cameras and picture frames.

Job losses are also expected as a result of the scaled back manufacturing, which will likely have a significant effect for the company’s global workforce of around 18,800 employees.

In terms of financial impact, the manufacturing downgrade is expected to cost Kodak some $30 million USD—but the company hopes to save around $100 million USD in the long run.

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