Bankrupt Eastman Kodak to cut more jobs

ROCHESTER, N.Y., Mon Sep 10, 2012– Bankrupt Eastman Kodak Co said it will cut 1,000 additional jobs by the end of this year and may cut more as it focuses on its commercial packaging and printing business.

Kodak, which invented the digital camera but had trouble adjusting to the digital age, was betting on an auction of its 1,100 patents to raise funds to repay money borrowed to finance its bankruptcy.

The company, which estimates its patents to be worth between $2.2 billion and $2.6 billion, received only sub-$500 million bids from investor groups, including Apple Inc and Google Inc, according to media reports.

Kodak has declined to comment on the sale and has delayed several times a bankruptcy court hearing during which it would reveal the details of the sale. The hearing on the sale was first set for August 20 and is now scheduled for Sept. 19.

If the sale falls flat, the company will need to find other ways to raise the money to pay creditors as it looks to exit bankruptcy by early 2013.

Kodak’s employee base has shrunk to about 17,100 at the end of last year from about 145,000 during the 1980s.

The company, which at one point employed more than 60,000 people in its hometown Rochester in upstate New York alone, did not disclose where the latest cuts would be made.

Boeing defense CEO: braced for deep spending cut over 10 years

SEATTLE ―Boeing Co’s. defense unit is bracing for the “worst case scenario” — a trillion-dollar U.S. defense budget reduction over 10 years, the chief executive of the company’s Defense Space and Security business said on Thursday.

Speaking on a webcast of a Bank of America Merrill Lynch forum, Dennis Muilenburg said the company must be realistic about the budget outlook.

“Now from an operational standpoint, productivity standpoint, we are assuming that worst case scenario,” Muilenburg said. “So we are designing our cost structure to accommodate a trillion-dollar budget reduction.”

The congressional panel created over the summer as part of the U.S. agreement to raise the debt ceiling must recommend $1.2 trillion in spending cuts later this month. If it fails to reach a deal, automatic cuts of that amount would kick in, to be split equally between defense and non-defense programs.

That would force the U.S. Defense Department to take steeper additional cuts on top of the $350 billion in spending reductions it has already set over the next decade.

Defense contractors are reducing headcount and shedding non-core units in preparation for leaner global budgets.

Boeing, which splits its business between defense products and commercial airplanes, believes that while defense spending is shrinking in the United States, opportunities remain in international markets, Muilenburg said.

He said he sees especially strong budget growth in the Middle East and Asia Pacific regions.

“We like the position of our portfolio in that tough environment,” he said, noting a backlog worth $59 billion for the Defense, Space & Security unit.

Shares of Boeing were up 0.6 percent to $64.93 on the New York Stock Exchange.