NCR said Thursday it will realign its global ATM manufacturing operations in an effort to lower costs.
As part of the rejiggering, NCR plans to reduce manufacturing operations and shift the focus of its Dundee, Scotland, facility to new product introductions and the delivery of high-complexity/low-volume products.
NCR also said it will attempt to meet customer demand in Europe, Middle East, Africa and Asia-Pacific through its manufacturing facilities in Beijing, Budapest and India. The company will also move to a contract manufacturing model in the Americas, transitioning ATM manufacturing to another manufacturer over a multimonth period.
NCR said the plan is expected to reduce overall operating costs and free capital to invest in revenue-generating programs in sales, engineering and market development. In line with the restructuring, NCR intends to continue to focus resources on engineering and advanced development, product management and marketing in affected locations where the manufacturing realignment will result in reductions in manufacturing employment.
“This restructuring will strengthen NCR’s global order fulfillment capabilities to better meet customer expectations and needs within this ever-changing market environment,” said Bill Nuti, president and chief executive officer of NCR. “The realignment should enable meaningful cost reduction as we optimize our manufacturing operations by improving absorption across geographies and strategically outsourcing to contract manufacturers where the company can reap economies of scale.”
