Citing the "unprecedented contraction in the global economy", the firm says it will stop manufacturing ATMs at its Gourdie site. It will also reduce staff levels in engineering, solutions marketing and support functions.

NCR's remaining staff in Dundee - around 450 - will focus on engineering, research and development, marketing and new product introduction.

Rick Marquardt, VP, global manufacturing, NCR: "We realise that these changes will bring challenging times for those employees affected and we are committed to helping any individuals affected with comprehensive outplacement support."

The company is now beginning a 90 day consultation process with union and employee representative groups.

Joe FitzPatrick, Dundee West MSP, says: "This is heartbreaking news. It is a tragic loss to Dundee's manufacturing sector. It is the end of an era."

The American vendor cut 627 Dundee jobs in 2007 as part of a restructuring of global ATM manufacturing operations in an effort to cut costs. The company has looked to move manufacturing to cheaper locations, opening an ATM manufacturing plant in Budapest, Hungary at the end of 2005.

Last year it was accused by Dundee West MP Jim McGovern of paying staff transferred from India to the city well below the minimum wage and then axing 51 jobs at the site. However, the firm claimed the Indian workers were at the Dundee site for training and not to replace any of the staff being made redundant.