US-based NCR is axing around 650 jobs at its ATM manufacturing facility in Dundee, Scotland as part of a restructuring of its global manufacturing operations.
Staff at the facility were told not to report for work today but to attend a meeting at mid-day where they were informed of the job cuts.
Around 100 manufacturing jobs will remain in Dundee but NCR has stated that it intends to shift the focus of the facility from ATM manufacturing to new product introductions and the delivery of "high-complexity/low-volume solutions".
Fears over job losses and the future of the Dundee facility have been growing since NCR opened an ATM maunfacturing plant in Budapest, Hungary at the end of 2005.
In a statement NCR says its is restructuring its global ATM manufacturing operations in an effort to cut costs. The vendor says its manufacturing facilities in Budapest, Beijing and India will supply ATMs to customers in the EMEA and Asia Pacific regions going forward.
In addition to the changes at its Dundee operations, the vendor plans to outsource its manufacturing operations in the Americas to an unspecified third-party company.
NCR says the restructuring is expected to reduce overall operating costs and free capital to invest in revenue-generating programmes in sales, engineering and market development
Bill Nuti, NCR president and CEO, says: "The realignment should enable meaningful cost reduction as we optimise our manufacturing operations by improving absorption across geographies and strategically outsourcing to contract manufacturers where the company can reap economies of scale."
The vendor says it will provide more details on the plans later in the month.
Earlier this week NCR disclosed plans to split its business into two separate companies by spinning off of its Teradata data warehousing unit to shareholders.