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NCR offshores ATM production

NCR is making 650 people redundant at its Dundee ATM factory as it cuts costs by moving the work abroad.

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Outsourcing

NCR is making 650 people redundant at its Dundee ATM factory as it cuts costs by moving the work abroad.

NCR's CEO, Bill Nuti, said, “This restructuring will strengthen NCR’s global order fulfilment capabilities to better meet customer expectations and needs within this ever changing market environment.

“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.

“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.”

The company said that manufacturing operations at Dundee would be scaled down and the focus shift to “new product introductions and the delivery of high-complexity/low-volume solutions”.

NCR will rely for volume manufacturing on plants in Beijing, India and a recently opened site in Budapest. Some ATM manufacturing will also be outsourced to an undisclosed company in the Americas.

NCR will provide more information on the changes on 25 January when it posts its fourth-quarter and year-end accounts.

Earlier this month, the company announced it would spin off its Teradata data warehousing company into an independent entity.

NCR splits into two

Comment on this article: computer.weekly@rbi.co.uk

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