Kodak is to stop making digital cameras, pocket camcorders and digital photo frames in the first half of this year as part of its restructure, the firm has revealed.
Instead, the firm which is 131 years-old, plans to expand its current brand licensing program and will seek firms to licence the design and technology to use in their own devices under its Consumer Business. The Kodak Consumer Business will also encompass online and retail-based photo printing, as well as desktop inkjet printers.
"For some time, Kodak's strategy has been to improve margins in the capture device business by narrowing our participation in terms of product portfolio, geographies and retail outlets. Today's announcement is the logical extension of that process, given our analysis of the industry trends," said Pradeep Jotwani, President, Consumer Businesses, and Kodak Chief Marketing Officer.
In addition to its Consumer Businesses, Kodak also has a Commercial Businesses division that encompasses digital and functional printing, enterprise solutions, and graphics, entertainment and commercial films. This accounts for three quarters of Kodak's total revenue.
The firm said it will continue to honour its product warranties and provide technical support and service for its cameras, pocket video cameras and digital picture frames.
Eastman Kodak filed for bankruptcy protection in the US last month. The firm obtained a $950m, 18-month credit facility from Citigroup to ensure it remains afloat during bankruptcy proceedings. Kodak said the credit facility, which is subject to court approval, would "enable the company to focus on its most valuable business lines".
"The board of directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak," said Chairman and Chief Executive Antonio M. Perez at the time.