ATM vendor Diebold has announced it will cut 700 jobs in North America and corporate operations, the majority of which have already happened.
The cuts are a part of what Diebold is calling a ‘multi-year realignment plan’ which the company hopes will reduce its overall costs by $100m to $150m.
The company intends to reinvest the money saved into research and development of the systems and infrastructure.
The savings are also intended to offset price erosion, wage inflation in emerging markets and commodity prices in the company’s core business.
EVP and chief operating officer of Diebold, George S Mayes Jr, said, "The process of change management is challenging, and it entails making difficult decisions. These difficult but necessary actions represent significant changes to our overall cost structure and organization. We have performed a thorough review of our current and future business requirements and have identified the changes that will support our long-term strategies to maximize cash flow, enable continued growth and drive shareholder value.
"These changes — along with the longer-term, structural transformational objectives we are working toward — will better prepare the company for positive growth moving forward. We are fully committed to achieve targeted savings and will pursue these initiatives with urgency and focus."
Diebold subsequently released its 2013 first quarter results and announced a net loss of $13.4m. Revenue was $633.5m, down 9.3% from the first quarter of 2012.
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