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Eastman Kodak Co. thought it shed the troubles associated with its beleaguered copier division two years ago when it sold much of the unit to Danka Business Systems PLC for $680 million.
But deepening financial troubles at Danka--leading to the departure of its top executives--are creating concerns locally at Danka and Kodak alike.
Company officials Tuesday said Kodak expects to lay off a few hundred workers at its facility in Tijuana, Mexico. The company earlier announced plans to lay off "in the low hundreds of workers" from its copier manufacturing division in Rochester.
Beyond that, Kodak and Danka jointly split the cost of copier research and development, each contributing some $12.5 million a quarter, or $50 million annually. That agreement reportedly is under review.
If Danka cannot pay its share, Kodak likely would eliminate some of those R&D positions, said Ulysses Yannas, an analyst with Mercer, Bokert, Buckman & Reid Inc. in New York City.
Meanwhile, analysts and industry officials expect some layoffs of Danka's 1,000-person staff at its facility in Gates....