Polaroid Retrenches

CAMBRIDGE--Polaroid Corp says the "severe decline in the world economy" that has lessened the demand for its products moved the instant camera and film company to suspend mid-year pay hikes for its employees.

President William J. McCune Jr said in a memorandum to employees last week that another consideration was the company's "appraisal to the negative effects at this time of passing on increased costs in the form of higher prices for Polaroid products."