Kodak Announces More Than 1,000 Layoffs

October 3, 2012 – 8:36 am

Kodak is required to file monthly reports to show the U.S. Bankruptcy Court how it’s doing. Analysts we spoke to say the numbers show despite all its efforts, Kodak’s moves may all be a too little too late even as the company told more than 1,000 employees they were being laid off Tuesday.

“The thing that stands out the most is that the rate of decline of their sales is accelerating precipitously,” said Brighton Securities financial analyst Brennan Redmond.

Redmond said if Kodak’s sales numbers continue the trend they’re on, the company’s quarterly sales year over year could be down 60 percent.

“What that means is their customers are leaving them in droves. They haven’t been ramping down their organization fast enough to meet the decline in sales, so the losses continue to increase and the cash burn continues to increase,” Redmond said.

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