Diebold to cut 350 US jobs to focus on overseas opportunities
03 February 2010 | 5965 views | 0
Banking automation vendor Diebold is to cut 350 jobs from its North American operations as it reports continuing weaknesses in the market for bank branch construction and a sharp dip in full-year revenues and income.
The vendor reported fourth quarter 2009 income from continuing operations of $7.9 million, down 55% from the year earlier period. Fourth quarter 2009 revenue was $724.9 million, down 8% from Q4 O8.
Full-year 2009 income was down by a third on 2008 at $73.1 million as revenue slipped by 12% to $2,718.3 million.
Introducing the results. Thomas Swidarski, Diebold president and chief executive officer warned of more pain in store for the firm, which has undergone massive restructuring over the past 18 months.
"Our business related to bank branch construction in North America remains especially challenging and will likely not return to historical norms in the near future," he says. "To improve our ability to invest in key growth initiatives, we are realigning our organisation and resources to better support our opportunities in the emerging growth markets. Unfortunately, these changes will result in the elimination of approximately 350 full-time jobs from our North America operations and corporate functions."
The job cuts will be largely completed by mid-February.
Despite the continued gloom in its domestic market, Diebold reported significant fourth quarter improvements in other geographies.
Global financial self-service orders increased more than 40% compared with the fourth quarter 2008, and grew nearly 40% sequentially from the third quarter. Orders in Asia Pacific increased more than 50%. In the Americas, financial self-service orders also rose more than 50% with a double digit decline in North America more than offset by significant gains in Brazil and Latin America. Orders in Europe, Middle East and Africa (EMEA) increased more than 20%.