Polaroid to Cut 1,500 Jobs, Sell Chemical Plant

Polaroid Corp. said it will cut 15% of its work force and sell a chemical plant to reduce costs and boost its profit, resulting in a fourth-quarter pretax charge of $310 million. The world’s largest maker of instant photographic equipment said it will eliminate 1,500 jobs worldwide and stop making chemicals for its own film. Instead, it will sell its chemical manufacturing facilities to International Specialty Products Inc. for $40 million to $60 million, said Polaroid spokesman Robert Guenther. The restructuring is the second by Chairman Gary DiCamillo since taking the helm in late 1995. Polaroid lost money in three of the last four years as one-hour photo processors stole business and investments in digital imaging sliced into earnings. Now the company is focusing more on marketing and less on manufacturing as it tries to stimulate demand after sales rose just 1.9% on average in each of the past five years. Polaroid shares rose 13 cents to close at $43 on the NYSE.