Polaroid Restructuring Plan To Save $60 Million Annually

Compiled ByGina Protopapa Polaroid Corp. will implement a comprehensive global restructuring plan designed to reduce overhead, realign the company's resources, and accelerate implementation of its digital strategy. The restructuring program, to be completed in 12 months, will result in the elimination of approximately 950 jobs -- about 11% of Polaroid's global workforce. The plan should realize $60 million in cost savings on an annualized basis for the manufacturer, designer, and developer of instant and digital-imaging products. As part of the restructuring plan, Cambridge, Mass.-based Polaroid expects to record a pre-tax charge of $90 million in the first quarter of 2001. Internally, Polaroid, which posts annual sales of $2 billion, will continue to consolidate its global manufacturing capacity to improve efficiencies, reflecting the reduced demand for traditional instant film. General and administrative overhead also will be reduced in areas such as information technology, human resources, and finance. To provide a more cost effective coverage model for the company's trade customers, Polaroid will realign its North American sales force by distribution channel. It also will continue to focus on improving cash flow by reducing capital expenditures, improving working capital, and selling underutilized assets.