NCR's ATM move will cost nearly 1,200 jobs

The move will cut operating costs and free up capital for other investments.
DAYTON (AP) -- NCR Corp. will outsource production of its automated teller machines in the Americas and shuffle the manufacturing of ATMs among its overseas plants to save money, a move that will eliminate nearly 1,200 jobs, the company said Thursday.
NCR has about 29,300 employees worldwide. NCR said the cuts will be made over the next nine months. No plants will be closed.
The company said the moves are expected to reduce operating costs and free capital to invest in revenue-generating programs in sales, engineering and market development.
"We need our cost erosion to outrun our price erosion," said Bruce Langos, senior vice president of global operations. "We've got to maintain a competitive cost structure."
ATM production in Dallas, Waterloo, Canada, and Sao Paulo, Brazil, will be shifted to an outside manufacturer. The plants will continue to do engineering and advanced-product work, Langos said.
Under the plan, about 425 of the 700 jobs at the Waterloo plant will be eliminated as will about half of the 100 jobs at both the Dallas and Sao Paulo plants.
NCR plans to move high-volume production of ATMs from Dundee, Scotland, to plants in Beijing, China; Budapest, Hungary; and Pondicherry, India. Those plants will expand their service areas to Europe, the Middle East, Africa and Asia-Pacific.
The Dundee plant will continue to produce complex, multifunction low-volume ATMs as well as perform engineering and advanced product development, Langos said.
He said 200 to 300 of the 650 workers at the Dundee plant will remain. About 200 workers are currently employed at the Budapest plant. Job levels at the plants in China and India were not available.
NCR's products include ATMs, retail self-checkout systems, automated bill payment systems, computer systems known as data warehouses that store and analyze large amounts of information, and airline, hotel and hospital self check-in and check-out kiosks.
On Monday, NCR said it plans to spin off its Teradata unit, resulting in one publicly traded company that makes computers that store and analyze massive amounts of data and another that makes ATMs and checkout scanners for retailers.
NCR's ATM unit accounted for 22 percent of the 6 billion in revenue the company reported in 2005.
The ATM division reported revenues of 349 million in the third quarter, identical to the same quarter in 2005. However, NCR said the unit's operating income fell from 60 million to 43 million because of lower margins for its North American production.

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