When a company chooses to file for bankruptcy, it normally means that they will receive protection as they refinance, cut jobs, and eliminate costs so that they can put their profits towards their liabilities. For the famous company Kodak, bankruptcy was almost inevitable. Though the business was a pioneer of the film industry, they had a difficult time transitioning into the new, digital realm of media. Digital cameras killed their film sales, and in movies film is also slowly being traded out for more efficient, easier mediums. Unable to change with the times, Kodak ended up in a precarious financial position, and is now trying to cut expenses in an attempt to emerge from their bankruptcy.

Kodak can be traced back to 1880, and is best known for putting the first affordable personal camera on the market. This camera was called the “Brownie” and was sought after by children and adults alike at the turn of the century. They are often cited as the company that created hobby photography because of their invention. Later, Kodak introduced the world to Kodachrome film. This film, which was created in 1935, became the first commercially successful amateur color film, doing away with the world of black and white photographs.

According to USA Today, Kodak is cutting thousands of jobs at the company as they try to emerge from bankruptcy protection. They are also reshuffling the executives at the company into different departments and combining areas of the company in order to eliminate the need for some employees. Sadly, the restructuring may cause some employees to file a personal bankruptcy all their own. This is because it is very hard to make ends meet without a steady income. People who are trying to put food on the table while paying a mortgage, bills, and providing for a family often end up stuck without anyway to pay. This is when they begin to take out loans, or fall into debt, hoping they can pay back the expenses when life is more profitable.

Once debt gets unmanageable, creditors start calling. Naturally, the parties that you are borrowing from want their money back. They will probably go through great lengths to get their thousands back from you. In some cases, mortgage companies threaten with foreclosure. Other creditors may bring on the threat of a formal lawsuit. Auto title loan companies will possess your car. Many of your precious assets can be seized in a moment. Bankruptcy protection can stop the chaos. Instead, the company or person who is in debt can slowly work out a repayment plan without being barraged by creditors who want their money back.

At Kodak, restructuring finances means letting employees go. The CEO of the company, Antonio Perez, says that Kodak needs to reduce their current cost structure, which is designed for a much larger and more diversified set of businesses. The c company hopes that they will exit from bankruptcy sometime in 2013. They will no longer be producing digital cameras, pocket video cameras, and digital picture frames while they try to reshape their business and determine what their primary business products should be. The company will also lose its Chief Financial Officer, and the president of Kodak.

So far, Kodak has already been able to reduce overhead costs, start cost reduction programs. Manage liquidity and raise capital, and focus on critical areas as it has restructured. They are executing asset sales at the moment in hopes to get the money that they need to satisfy their debts, Kodak has also started two new units and put them up for sale. One is personalized imaging, and the other is document imaging. These technological services can be purchased by other companies who want the means to offer these services, but don’t have the equipment or workers.