Carestream set for final round of layoffs

WINDSOR — Carestream Health Inc. will initiate its final round of layoffs at its Windsor operation by September.

Carestream CEO Todd Clegg sent a letter on Tuesday to the Colorado Division of Labor and Employment in accordance with the federal Worker Adjustment and Retraining Notification Act, indicating that its last employees would be laid off in September as part of the company’s impending closure.

“The exit for the final remaining employees is now planned, including four that had been delayed from a prior notice. Based on the information available at this time, the reduction in force for final remaining employees will begin September 16, 2024, at our facility in Windsor, Colorado,” Clegg wrote

The federal WARN Act requires advance notice of layoffs for companies that meet certain criteria.

This final round of layoffs includes employees in 21 job titles, including four employees whose layoffs were delayed from a previous notice. In all, the company announced a total of 210 employees to be laid off.  

Carestream in August 2022 filed for Chapter 11 bankruptcy protection, telling a bankruptcy court in Wilmington, Delaware, that its $1.03 billion in debt was not sustainable in light of long-term headwinds in the medical-imaging industry. A month later, Carestream announced that the court had confirmed the company’s “prepackaged” restructuring plan, in which Carestream planned to successfully complete its recapitalization process and emerge from Chapter 11 by eliminating approximately $470 million of its debt.

Based in Rochester, New York, Carestream is a worldwide provider of medical and X-ray imaging systems and precision contract coating services. BizWest reported in January that the company had listed its 416-acre campus in the Great Western Industrial Park at 2000 Howard Smith Ave. in Windsor for sale. Carestream has its roots in the health division of Eastman Kodak Corp. (NYSE: KODK), the iconic manufacturer of film and cameras. Kodak Health Group was sold in 2007 to Toronto-based private equity firm Onex Corp. (TSX: ONEX) for $2.35 billion in cash. Around 8,100 employees transferred to Onex, and Kodak Health Group was renamed Carestream Health.

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