Kodak digital cameras to be manufactured by Flextronics

In a move probably intended to placate investors after a disastrous second quarter -- recently-reported net losses of $282 million were even higher than expected -- Kodak has announced that it will shift the manufacturing of its digital cameras over to Singapore-based Flextronics International. Although Kodak will continue to "develop the high-level system design, product look and feel, and user experience" of the cameras, Flextronics will acquire most of the company's Digital Product Center in Japan, and will be responsible for the assembly, production, and testing of the entire lineup. As part of the deal -- which Kodak hopes will help bring products to market more quickly as well as control costs -- about 550 of its employees will be transplanted to Flextronics facilities in China. While Kodak is currently the number one seller of digital cameras in the US, it's been difficult for the company to make the transition from film, with 100,000 workers having lost their jobs since 1988. Assuming that the requisite conditions are met and regulators give the thumbs up, the two companies plan to seal the deal before the end of the current quarter.

[Via LetsGoDigital]