The shutters are coming down on traditional film-based cameras

In January last year, Kodak said it would cut its global workforce by up to 15,000, but now its wants to cut more jobs to speed up its move into digital.

Restructuring costs pushed Kodak into a net loss of $146m (�84m) in the second quarter, after a $136m loss last year.

However, digital sales in the quarter rose by 43%, the company said.

Digital reality

Kodak expects digital technology to become its biggest source of revenue this year for the first time as the world's top maker of photographic film repositions itself in the marketplace.

The increased job cuts are set to include about 7,000 manufacturing posts as the company gets rid of non-digital assets, including film-making factories and equipment.

At the end of last year, Kodak had a global workforce of 54,800, down from 64,000 at the end of 2003.

The Rochester, New York-based company said sales of film and related services were falling at a faster-than-expected rate, particularly in emerging markets, prompting the new cuts.

Film sales are still a vital part of its revenue stream, so that it can fund its all-important switch into digital products.

"Our disappointing start in the first half of this year makes it clear that I need to make some changes, and make them now," said chief executive Antonio Perez.