KODAK announced the closure of five laboratories at a cost of 500 jobs last night — the second time the camera maker has cut staff in the UK this year.

The American group, which invented film rolls in 1884, is battling with a sharp fall in film sales as consumers switch to digital technology faster than expected.

Last month, Kodak closed its European filmmaking factory in Annesley, Nottinghamshire, and cut 600 jobs as part of a three-year programme, announced in January, to trim between 12,000 and 15,000 staff.

James McConnell, UK general manager, Kodak Digital & Film Imaging Systems, said: “The simple fact is that consumer and customer preferences are changing and demand for wholesale photo finishing has fallen with the rising popularity of digital photography.”

Digital cameras now outsell film cameras by four to one, but the new format overtook film cameras for the first time only last year.

Revenue from film sales, meanwhile, is expected to drop between 10 and 20 per cent over the next three years.

Kodak said that it would close the five sites in Northampton, Glasgow, Walsall, Wimbledon in South London, and Portishead, near Bristol. During the past year the volume of photo-finishing business at Kodak’s laboratories has declined 30 per cent.

The closures will occur next year and will cost the company $10 million (£5.4 million) in redundancy charges plus $6 million in disposal costs. Kodak will also take $27 million in non-cash charges, primarily to write off the remaining book value of the labs.

Kodak shares traded up 1 per cent to $32.16 following the announcement.

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