Massive Layoffs Loom At Eastman Kodak

Eastman Kodak Co.’s vow to carve costs to offset Japanese gains in the U.S. film market could translate into thousands of layoffs, analysts said Tuesday.

Stock in Kodak, which gave few specifics of its plan, fell $3, or 5 percent, to $57 in heavy trading Tuesday on the New York Stock Exchange. The shares had plunged 8 percent Monday when Kodak warned that second-half profits would come in far below expectations.

The company’s financial woes pivot around a film-price feud with archrival Fuji Photo Film Co., which has been underselling Kodak on its home turf by as much as 20 percent to 30 percent this summer.

Kodak earnings also have been hurt by the dollar’s strength abroad and weak sales of photofinishing products, X-ray film and recordable CDs.