Kodak Simplifies Its Business Structure
Eastman Kodak announced the creation of a new and simpler business structure designed to increase productivity, reduce cost and accelerate its transformation into a digital company that delivers sustainable profitability and creates value for its stakeholders.
Under the new structure, Kodak has reduced its number of segments from three to two:
- The Commercial Segment
- The Consumer Segment
Both report into a newly created Chief Operating Office led by Philip Faraci, who will continue to serve as Kodak’s president and chief operating officer, and by Laura Quatela, who was recently named, alongside Faraci, as president and chief operating officer. Faraci will focus on the Commercial Segment and the company’s sales and regional operations, and Quatela will focus on the Consumer Segment and certain corporate functions. Both will report to Antonio M. Perez, chairman and CEO.
“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,” Perez said. “This new structure simplifies the organization, focuses it more precisely on our consumer and commercial customers, and puts the right people in place to capitalize fully on the tremendous technological capabilities of Kodak.
“These business structure changes also allow us to allocate resources more productively, continue to significantly reduce administrative costs, and improve efficiency. We are confident that these changes will support our efforts to make the most of our opportunities.”
Under the new structure, the Commercial and Consumer Segments will replace:
- The current Graphic Communications Group (GCG), which provides digital printing equipment, consumables and software to the publishing and commercial printing industries;
- The Consumer Digital Imaging Group (CDG), which helps consumers capture and print images; and
- The Film, Photofinishing and Entertainment Group (FPEG), which represents the company’s traditional film and photographic paper products.
The Commercial Segment will include all of GCG plus two product lines currently in FPEG—Entertainment Imaging and Commercial Film. The Consumer Segment will include all of CDG plus three FPEG product lines—Paper & Output Systems, Event Imaging Solutions, the Consumer Film and the Intellectual Property business.
Within the Consumer Segment, Pradeep Jotwani, currently president of CDG, has been named president of a new Consumer Business, which expands his responsibilities to include all of Kodak’s consumer digital and traditional product lines. In that capacity, he will report to the Chief Operating Office.
Read the full press release here.