In a press release today Polaroid Corp. announced a "major global restructuring plan" which is designed to reduce debt. Approximately 2,000 jobs out of a global workforce of 8,000 will be "phased out" over the next one and a half years. This doesn't come as too much of a surprise after the recent appointment of a new CFO and various press releases concerning its troubled business.
Polaroid Announces Restructuring to Drive Profitability and Reduce Debt
Plans to Reduce Workforce by 2,000 Positions over 18 Months
CAMBRIDGE, MA June 13, 2001 Polaroid Corporation (NYSE: PRD) today announced a major global restructuring plan designed to reduce debt and return the company to profitability. Approximately 2,000 positions, or 25 percent of the global workforce of 8,000, will be phased out over the next 18 months.
The restructuring program should realize total annual cost savings of between $175 million and $200 million by the end of 2003, and the company will take a series of restructuring charges in 2001 and 2002 to reduce its cost base. These charges are expected to total between $150 million and $175 million. In addition to significant reductions in personnel, the restructuring will involve a reduction and reconfiguration of Polaroids global operations.
"This is an extremely difficult decision, but an absolutely necessary one if Polaroid is to compete in the digital future. We must focus on our new Opal and Onyx instant digital printing technologies and manage our core instant business to generate cash and reduce debt," said Gary T. DiCamillo, chairman and chief executive officer.
This is the second restructuring announced by Polaroid this year and will impact virtually all of the companys global operations, including about 1,000 employees in the United States most of them in Massachusetts. In February, the company announced a restructuring to reduce its workforce by approximately 950 jobs. That plan combined with the one announced today will reduce the total number of Polaroid employees worldwide to approximately 5,500 by the end of 2002.
DiCamillo acknowledged that the Polaroid core instant business is experiencing steeper declines than projected due to the soft economy and the competing growth of digital imaging. He said the restructuring plan is consistent with Polaroids new two-part business model to: (1) manage the companys core instant products for cash and profitability; and (2) develop an instant digital printing business with significant opportunity for double-digit growth.
Polaroid introduced this new business model on May 31 at a meeting with investors in New York, where Ian Shiers, executive vice president worldwide sales and marketing, previewed steps the company would take to compete in the digital future.
"Our infrastructure clearly is too big, and the changes in our business require a significant reduction of our cost base in line with our conservative revenue expectations for the next two to three years," he said in New York. Todays announcement supports that premise and puts Polaroid in a solid position to meet the short-term financial targets that Shiers outlined:
- Gross margins in the low 40s as a percentage of sales
- Overhead around 30 percent of sales
- Double-digit operating margins
- Improved cash flow through strong EBITDA and a focused reduction of working capital and capital expenditures.
Polaroid continues to focus on cash generation as its top 2001 priority. Cash flow for the quarter is ahead of plan due to asset sales and reductions in working capital and capital expenditures. Operating results for the second quarter, however, are likely to be in the area of the operating loss reported in the first quarter, excluding potential one-time charges and real estate gains.
|Patrick Finds Inner Peace by ecastellon|
from Your best photo of the week!
|Forks by Kukla|
from Arranged everyday objects
Starting October 1st, Getty Images will no longer accept images in which the models have been Photoshopped to "look thinner or larger." The change was made due to a French law that requires disclosure of such images.
The 3D printed panoramic film camera known formerly as the "Cycloptic Mustard Monster" is officially available as a DIY kit through Kickstarter.
Snapchat is using its augmented reality tech to replace the sky in your photos. The so-called 'sky filters' can swap out a boring sky for a colorful sunset, rainbows, a starry night, and more.
A court ruling our of Newton, Massachusetts has set an important legal precedent for drone pilots: federal drone laws will now trump local drone regulations in situations where the two are in conflict.
Photographer Mathieu Stern has put together another interesting vintage lens shootout. One model, three lenses, three locations.
From landscapes to motocross and white water kayaking to a wedding, exactly what can't the D850 do?
Calumet UK and Wex Photographic, two of the biggest photography retailers in the United Kingdom, are going to officially merge tomorrow.
macOS High Sierra came out today, but if you use a Wacom tablet you need to wait a few weeks before you upgrade. According to Wacom, they won't have a compatible driver ready for you until "late October."
Do you think a $3,000 Canon 80D video rig can compete with an $80,000+ Arri Alexa setup? Well it can't, but check out this video anyway to see how the rigs compare.
Seven simple rules to make sure you get the most out of your next photography outing.
Vitec, the company that owns popular accessory maker Manfrotto, has just acquired JOBY and Lowepro for a cool $10.3 million in cash. The acquisition adds JOBY and Lowepro to Vitec's already sizable collection of camera gear brands.
A master drone pilot has captured one of the most incredible (and highly illegal) drone videos we've ever seen by flying around, inside, onto, and under a moving train.
Intel just debuted their 8th generation desktop CPUs, and the lineup packs a performance boost for 'content creators' that photo and video editors might be intrigued by.
Canon is developing a 'Free Viewpoint Video System' that will turn real life sports games and events into immersive 3D interactive experiences. It's video game-like camera control IRL.
A veteran photojournalist, Rick Wilking secured a spot in the path of totality for the August solar eclipse. While things didn't quite pan out as predicted, an unexpected subject in the sky and a quick reaction made for a once-in-a-lifetime shot.
The new iZugar 3.25mm F2.5 super fisheye lens offers an insane 220-degree angle of view. That means it can basically see behind itself... good luck keeping your feet out of the shot.
You'll laugh, you'll cry, you'll remember that time you took a picture of the frozen pizza baking directions.
A Craigslist poster has discovered the worst possible way to photograph a car: taking pictures of pictures displayed on a cracked and scratched up smartphone screen.
With the iPhone X coming out soon, the title probably won't last, but the iPhone 8 Plus is officially the best smartphone camera DxOMark has ever tested, and the iPhone 8 is second.
Kodak's new Facebook Messenger chatbot is trying to bring back the 'Kodak Moment' by digging up your old social media photos and trying to sell you prints and custom coffee mugs.
Affinity Photo for iPad was touted as "the first full blown, truly professional photo editing tool to make its way onto the Apple tablet." This update makes it that much more convenient.
Yashica has released a new teaser video, and this one claims they'll be releasing an "unprecedented camera" in October on Kickstarter. Ready... set... speculate!
Storage solutions company Synology has just released its very first 6-bay NAS tower. Combined with the DX1215 expansion units, it can hold and control up to thirty drives.
We're always expanding our collection of product overview content, and we've just added videos for the Canon EOS 6D Mark II, the EOS Rebel SL2 and EOS M6.
The venerable Canon PowerShot G1 was announced seventeen years ago this week, marking the start of a line of enthusiast-focused compacts that's still alive and kicking.
Super macro photographer Can Tuncer captured these incredible close-ups of a single peacock feather using a special setup and three different microscope lenses.
After successfully crowdfunding the Biotar 75mm F1.5, Oprema Jena is at it again. This time they're bringing back the Biotar 58mm F2: the world's only lens with a 17-blade aperture.
Adobe's move to a subscription model is treating it very well indeed. The company has posted record revenue for the second quarter in a row, hauling in a mind-boggling $1.84 billion.
More details have emerged about the potential sale of Blackstone's 45% stake in iconic camera brand Leica.
Popular mobile editing app Snapseed just got a major update that includes a new interface and 11 new presets for both Android and iOS, as well as adding the Perspective tool to the iOS version.