Inventor of the handheld camera, Kodak eyes exit from business as it fights insolvency  

Eastman Kodak Co. said this week it would implement a sweeping business cost reduction program this week as it works to rise from insolvency.

Eastman Kodak filed for bankruptcy protection in January and in an an attempt to improve its financial position the company said it plans to stop making digital cameras, pocket video cameras and digital picture frames in the first half of this year. Reuters reports the company's cost reduction campaign is aimed at improving efficiency and overhauling spend management and supply chain management.

While the move will likely help the company to cut costs, it also represents a watershed moment for Kodak, the inventor of the handheld camera. Analysts said the move could be too little too late for Kodak, which critics said was loath to embrace digital technologies when they first appeared, hurting revenue and its reputation.

Kodak officials conceded the decision to stop manufacturing such cameras would result in the loss of a "significant" number of jobs, according to the news provider. What's more, Kodak said it would take a charge of approximately $30 million to leave the business, though it said the decision would likely save roughly $100 million in operating savings each year.

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