Eastman Kodak, in an attempt to accelerate its "digital transformation" has announced it will be adopting a new business structure that will see the company streamline itself from three business units down to two. Previously, the company was divided into traditional film and photo paper products, consumer digital imaging and graphic communications. The two segments will now be known as the Commercial Segment and the Consumer Segment. Both will report to a newly created Chief Operating Office, headed by Philip Faraci and Laura Quatela, the co-Chief Operating Officers.
"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 Chief Executive Antonio Perez.
No segments have been cut from Kodak's offerings, merely reorganized. No job cuts for its 19,000 employees have been announced.
The Graphic Communications Group (responsible for its NexPress, CTP, workflow and consumables lines) will be incorporated into its Commercial Segment along with Entertainment Imaging and Commercial Film businesses. The Commercial Segment will consist of three businesses, led by the following: Brad Kruchten, currently President of FPEG, has been appointed President of the new Graphics and Entertainment & Commercial Film Business, which includes Prepress, Entertainment Imaging, Commercial Film and Global Consumables Manufacturing; Douglas Edwards, currently General Manager, Prepress Solutions, has been appointed President of Digital and Functional Printing; and Dolores Kruchten, currently General Manager, Business Solutions & Services, has been appointed President of Enterprise Services and Solutions, which includes document scanners, workflow software, and services.
The announcement has boosted Kodak's share prices some 30 percent today, but remains at just over half way to its goal of $1 to enable it to stay on the New York Stock Exchange. Last week a speculative report by MarketWatch indicated Kodak, post bankruptcy, should divest itself from consumer markets and focus on business-to-business segments.