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Kodak replaces CFO and cuts further jobs

September 11, 2012

OEM to cut 1,000 further jobs, while calls for management changes results in replacement of CFO.

Wall Street Journal reports that Antoinette P. McCorvey, Chief Financial Officer at Kodak is to leave the company following calls for management changes from creditors in response to Kodak’s US operations seeing an increase in cash use of $72 million (€56.3 million) in July – more than the $64 million (€50 million) in June and $43 million (€33.6 million) in May.

McCorvey will be replaced by Rebecca Roof of restructuring advisory firm AlixPartners LLC on an interim basis, with creditors also reportedly calling for CEO Antonio Perez to resign, although Kodak has declined to comment on this.

In addition to McCorvey, Kodak will reportedly “remove some layers of its executive ranks”, including Co-President Philip J. Faraci, and Laura Quatela and Dolores Kruchten who will both leave after the personalised imaging unit and document imaging businesses they each lead are sold in early 2013.

Further lay-offs are also reportedly being considered by the company, which expects to save “about $330 million (€258 million) a year” from the reduction in its workforce. According to the article, 2,700 jobs have already been cut so far in 2012, leaving 13,400 employees at the company.

The job cuts are also a result of Kodak’s digital patent auction, which is expected to raise less money for the company than it previously predicted and has been extended by over a month.  The money raised from the auction was hoped to lift the business out of bankruptcy, with estimates originally reaching $2 billion (€1.5 billion) but early bids only reaching between $150 million (€117 million) and $250 million (€195 million).

News of the layoffs comes after The Recycler reported in August that several of Kodak’s top executives were to be paid millions of dollars in bonuses despite the company filing for bankruptcy in January.

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