P.M. BRIEFING : Kodak Cutback to Cost $225 Million

Eastman Kodak Co., in the midst of a major cost-cutting program, said today it will take a $225-million charge against earnings to pay for severance benefits to outgoing employees and write-offs of assets.

Kodak, which has been trying to boost its flagging earnings, expects to trim its U.S. work force by about 1,000 this year to 87,000, a company spokesman said.

The photographic supply company earlier this year announced “separation enhancements” that include three weeks of pay for every year of service, up to 78 weeks.

The after-tax charge, the equivalent of about 70 cents per share, will be reflected in the mid-year earnings report to be released Aug. 1 and is expected to cover the costs of the severance payments as well as the sale or closure of about a dozen businesses.

Kodak stock was off 87.5 cents to $47.875 on the New York Stock Exchange.