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KODAK RETIREES TOTAL 6,733 UNDER EARLY RETIREMENT PROGRAM Company to take $495 million charge in fourth quarter net earnings

 KODAK RETIREES TOTAL 6,733 UNDER EARLY RETIREMENT PROGRAM


Company to take $495 million charge in fourth quarter net earnings
 ROCHESTER, N.Y., Dec. 20 /PRNewswire/ -- Eastman Kodak Company (NYSE: EK) today announced that a total of 6,733 employees elected to take early retirement under the company's Resource Redeployment and Retirement Plan. Of this total, 5,865 will leave by year-end 1991. The remaining 868 will be extended about six months into 1992.
 The company also announced that an after-tax restructuring charge will reduce fourth quarter net earnings by an estimated $495 million. More than two-thirds of this amount reflects additional costs for employees taking the early retirement option, while the balance reflects additional reorganization of manufacturing and photofinishing operations abroad and charges relating to the company's exit from non-strategic businesses.
 "While these charges represent a significant cost in 1991, there is no question that we are now directly addressing the key issues that will generate growth in the profitability of our core imaging business: personnel levels, research focus, capital efficiency, new product innovation, manufacturing productivity, and operating profit margins," said Kay R. Whitmore, Kodak chairman, president and chief executive officer.
 Kodak estimated the annual after-tax cost savings from the early retirement program will exceed $150 million, beginning in 1992.
 Whitmore noted that some hiring would take place to fill critical needs in manufacturing, service and sales. "Hiring for fulltime, regular positions will be limited to about 600 and many of them will be outside Rochester," he said. "About 1,000 positions have already been filled on a supplementary basis. The supplementary, or buffer workforce provides us with needed flexibility and an experience base for cost-effectively filling positions that come open as natural attrition takes place over time."
 He also noted that Kodak would fill other critical needs by redeploying people and assets from underperforming areas to those that promise better business returns.
 -0- 12/20/91
 /CONTACT: Paul C. Allen of Eastman Kodak Company, 716-724-5802/
 (EK) CO: Eastman Kodak Company ST: New York IN: CHM LEI SU:


SM -- CL007 -- 4310 12/20/91 11:20 EST
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Publication:PR Newswire
Date:Dec 20, 1991
Words:348
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