NCR to restructure manufacturing operations, cut jobs

NCR Corporation on January 11 announced plans to realign its global Financial Self Service manufacturing operations in line with the company’s strategy to build a more competitive cost structure.

“This restructuring will strengthen NCR’s global order fulfillment capabilities to better meet customer expectations and needs within this ever-changing market environment,” said Bill Nuti, president and chief executive officer of NCR. “The realignment should enable meaningful cost reduction as we optimize our manufacturing operations by improving absorption across geographies and strategically outsourcing to contract manufacturers where the company can reap economies of scale.”

“This is another step in the right direction for NCR and, although we have more to do, this represents one of the many initiatives that we are undertaking to achieve our longer-term operating margin objectives for our Financial Self Service business,” Nuti added.

Highlights of the realignment include:

·     Proposals to reduce manufacturing operations and shift the focus of the Dundee, Scotland, facility to new product introductions and the delivery of high-complexity/low-volume solutions

·     Meeting volume customer demand in Europe, Middle East, Africa and Asia-Pacific through NCR manufacturing facilities in Beijing, Budapest and India

·     Moving to a contract manufacturing model in the Americas. NCR will transition ATM manufacturing in the Americas to a premier manufacturer over a multimonth period to ensure that no interruption in shipments or quality is experienced by NCR customers.

The approach is expected to reduce overall operating costs and free capital to invest in revenue-generating programs in sales, engineering and market development. In line with this restructuring, NCR intends to continue to focus resources on engineering and advanced development, product management and marketing in affected locations where the manufacturing realignment is anticipated to result in reductions in manufacturing employment.

About NCR Corporation
NCR Corporation is a global technology company helping businesses build stronger relationships with their customers. NCR’s Teradata data warehouses, ATMs, retail systems, self-service solutions and IT services provide Relationship Technology that maximizes the value of customer interactions and helps organizations create a stronger competitive position. Based in Dayton, Ohio, NCR employs approximately 29,300 people worldwide.