Kodak Creates New Business Structure to Accelerate Digital Transformation
January 10 2012 - 8:26AM
Business Wire
Eastman Kodak Company (NYSE:EK) announced the creation of a new
and simpler business structure designed to increase productivity,
reduce cost and accelerate its transformation into a digital
company that delivers sustainable profitability and creates value
for its stakeholders.
Under the new structure, Kodak has reduced its number of
segments from three to two – the Commercial Segment and the
Consumer Segment – which will both report into a newly created
Chief Operating Office. The Chief Operating Office will be led by
Philip Faraci, who will continue to serve as Kodak’s President and
Chief Operating Officer and by Laura Quatela, who was recently
named, alongside Faraci, as President and Chief Operating Officer
of Kodak. Faraci will focus on the Commercial Segment and the
company’s sales and regional operations, and Quatela will focus on
the Consumer Segment and certain corporate functions. Both
individuals will report to Antonio M. Perez, Chairman and Chief
Executive Officer, as will the positions of Chief Financial
Officer, Chief Technical Officer, Chief Marketing Officer and
General Counsel.
“As we complete Kodak’s transformation to a digital company, our
future markets will be very different from our past, and we need to
organize ourselves in keeping with that evolution,” Perez said.
“This new structure simplifies the organization, focuses it more
precisely on our consumer and commercial customers, and puts the
right people in place to capitalize fully on the tremendous
technological capabilities of Kodak. These business structure
changes also allow us to allocate resources more productively,
continue to significantly reduce administrative costs, and improve
efficiency. We are confident that these changes will support our
efforts to make the most of our opportunities.”
The changes are effective January 1, 2012. Under the new
structure, the Commercial and Consumer Segments will replace the
current Graphic Communications Group (GCG), which provides digital
printing equipment, consumables and software to the publishing and
commercial printing industries; the Consumer Digital Imaging Group
(CDG), which helps consumers capture and print images; and the
Film, Photofinishing and Entertainment Group (FPEG), which
represents the company’s traditional film and photographic paper
products.
The Commercial Segment will include all of GCG plus two product
lines currently in FPEG – Entertainment Imaging and Commercial
Film. The Consumer Segment will include all of CDG plus three FPEG
product lines – Paper & Output Systems, Event Imaging
Solutions, the Consumer Film and the Intellectual Property
business. Consistent with the organizational changes, the company’s
segment financial reporting will change in 2012, beginning with the
first-quarter 2012 results. At that time, the company will provide,
for comparative purposes, prior-year results for the Commercial and
Consumer Segments.
Within the Consumer Segment, Pradeep Jotwani, currently
President of CDG, has been named President of a new Consumer
Business, which expands his responsibilities to include all of
Kodak’s consumer digital and traditional product lines. In that
capacity, he will report to the Chief Operating Office. Jotwani
also remains Chief Marketing Officer, and in that capacity, he
reports to the CEO. Timothy Lynch, Chief Intellectual Property
Officer, will lead the company’s Intellectual Property business,
reporting to Quatela in the Chief Operating Office.
The Commercial Segment will consist of three businesses, led by
the following: Brad Kruchten, currently President of FPEG, has been
appointed President of the new Graphics and Entertainment &
Commercial Film Business, which includes Prepress, Entertainment
Imaging, Commercial Film and Global Consumables Manufacturing;
Douglas Edwards, currently General Manager, Prepress Solutions, has
been appointed President of Digital and Functional Printing; and
Dolores Kruchten, currently General Manager, Business Solutions
& Services, has been appointed President of Enterprise Services
and Solutions, which includes document scanners, workflow software,
and services.
Additionally, Patrick M. Sheller, the company’s recently named
General Counsel, has also been named Chief Administrative Officer
and has been elected by the Board of Directors as Senior Vice
President. As Chief Administrative Officer, Sheller will be
responsible for the day-to-day oversight of certain corporate
functions, including Legal, Human Resources, Worldwide Information
Systems, Communications & Public Affairs, and Health, Safety
& Environment. As General Counsel, he reports to Perez, and in
his capacity as Chief Administrative Officer, he reports to
Quatela. Sheller’s responsibilities as Chief Compliance Officer
will be reassigned. As previously announced, he will continue to
serve as Secretary to the board of directors.
Susan Wylie, currently Assistant General Counsel and Director,
Compensation, Benefits and Employment Law, has been additionally
elected by the Board of Directors as Assistant Secretary. Jack
Bailey, currently Senior Counsel, Governance Risk and Compliance
within the Company’s legal department, has also been elected
Assistant Secretary by the Board of Directors. Wylie will report to
Sheller and Bailey will report to Wylie.