Kodak is expected to make massive layoffs as the company tightens the purse strings for 2007. Up to 3,000 more jobs are expected to go.

Kodak has said it will step up its major restructuring programme, a move it hopes will increase its profit margins by up to 29 per cent.

The programme has been in effect since last year when Kodak announced 23,400 redundancies, says Reuters .

Part of the company's restructuring involves moving away from traditional film and print based photography and embracing more digital technologies.

Kodak recently announced its entry into the ink jet printer market. The company released a line of high-quality printers and ink cartridges it says will revolutionise the home photo printing.

In 2006 the company lost $754 million, an improvement over its $1.35 billion loss in 2005.