Business Notes Layoffs

While it remains the world's leading maker of photographic equipment, Kodak (est. 1985 sales: $10.6 billion) has been suffering a string of negative developments. In January the company lost a patent-infringement suit brought by Polaroid, and dropped out of the instant-camera market. Last week Kodak announced that weak 1985 earnings will compel it to eliminate 10% of its 129,000 jobs. The company also plans to cut out raises for 130 top executives in 1986 and to reduce overall spending by 5%.

Kodak, which suffered a 27% profit decline during the first nine months of 1985, blamed product-development costs and foreign competition. Kodak's profits were further hurt by the strength last year of the U.S. dollar, which raised the company's prices overseas.

Wall Street welcomed the firm's cost-cutting moves. Said Eugene Glazer, who follows the photo industry for Dean Witter Reynolds: "It will be painful in the short run, but Kodak will reap the rewards in the long run, starting next year." Few workers, however, were looking that far ahead. Said one: "The question on my mind is, Will I still have my job?"