Dayton, OH - 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 over nine months, the company said Thursday.
NCR has about 29,300 employees worldwide. No plants will be closed, and none of about 2,000 jobs in its headquarters city of Dayton are expected to be affected.
ATM production in Dallas; Waterloo, Canada; and Sao Paulo, Brazil, will be shifted to an outside manufacturer. The plants will continue to focus on development, engineering and marketing of advanced ATM products, said Bruce Langos, NCR senior vice president.
Under the plan, about 425 of the 700 jobs in Waterloo will be eliminated as will about half of the 100 jobs in both Dallas and Sao Paulo. High-volume ATM production will be moved 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.
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 Dundee workers will remain.
NCR's ATM unit accounted for 22 percent of the $6 billion in revenue the company reported in 2005. The 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.
On Monday, NCR said it plans to spin off its Teradata unit, creating one company that makes computers that store and analyze data and another that makes ATMs and retail checkout scanners.
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