Rochester, N.Y. - Kodak executives hope to simplify its structure and cost costs in a new company design.
On Tuesday, Kodak announced it would reduce the number of its businesses to two, with a commercial and a consumer segment.
Kodak had been operating with three divisions. One focused on traditional film and photo paper products, another on consumer digital imaging, and a third on graphic communications.
The reorganization will not include any job cuts.
"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," said Kodak CEO and Chairman Antonio Perez. "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.
Kodak stock closed up $0.20 to finish at $0.60 a share, a 50 percent increase.
But is the restructuring a sign that the Kodak could be on the verge of being sold?
"One reason it looks like Kodak is splitting off consumer is it makes that unit easier to sell should they decide to do so," said George Conboy of Brighton Securities. "My opinion is they probably are marketing this unit now and talking to potential buyers."
