Eastman Kodak Company announced it will phase out its dedicated capture devices business which is made up of digital cameras, pocket video cameras and digital picture frames in the first half of this year. Kodak said it will now expand its current brand licensing program. Kodak said its Consumer Business will now include online and retail-based photo printing and desktop inkjet printing.

Kodak said the decision will lead to 400 job losses worldwide, 30% of which would be in Rochester.

Kodak said it contacted its retail partners and will help ensure an orderly transition. Kodak also said it will continue to honor all related product warranties and provide technical support for its cameras, pocket video cameras and digital picture frames.

In a press release, Pradeep Jotwani, President, Consumer Businesses, Kodak Chief Marketing Officer said:

“For some time, Kodak’s strategy has been to improve margins in the capture device business by narrowing our participation in terms of product portfolio, geographies and retail outlets. Today’s announcement is the logical extension of that process, given our analysis of the industry trends."

Kodak expects to achieve annual operating savings of more than $100 million after the phase out is complete. The company did say it expects to incur an approximate charge of $30 million related to separation of benefits resulting from the exit of the business.

Among the products and services Kodak said it will maintain are: retail-based photo kiosks and digital dry lab systems, consumer inkjet printers, Kodak apps for Facebook, Kodak gallery (www.kodakgallery.com), Kodak camera accessories and batteries businesses and the traditional film capture and photographic paper business.