Diebold Slashing 800 Jobs

Maker of ATMs and voting machines will cut 5 percent of its work force, mostly in North America and Brazil, as part of a plan to save $100 million.

NORTH CANTON, Ohio (AP) — Diebold Inc. will cut 5 percent of its work force as part of a plan to save $100 million, the maker of ATMs and voting machines said Wednesday.
The company said it will shed 800 jobs, mostly in North America and Brazil. It did not disclose the costs associated with the planned move. Diebold is also reviewing manufacturing and storage facilities in North and South America for ways to further reduce costs.
Diebold is dealing with a sharp decline in revenue at its election systems unit and delays in Brazil, where it was to install a lottery system.
''We faced significant challenges in all of our businesses'' in 2007, Chief Executive Thomas Swidarski said in a statement.
The company said preliminary data show 2007 revenue rose 1 percent to $2.95 billion in 2007 from an adjusted $2.93 billion in 2006. Election systems revenue fell 69 percent to $61 million, and the Brazilian lottery revenue dropped 87 percent.
Diebold has not issued any financial statements since April and is being investigated by the Justice Department and securities regulators over its accounting practices.
The company said it resolved the review of how it recognizes revenue and changed an accounting practice. The change boosted revenue by $31 million in 2007 and by $27 million in 2006. For prior years, it took $190 million off the top line.
Diebold expects an ongoing review of accounting items to be done by the end of the first quarter or in the second quarter. Then it will report preliminary results for the final three quarters of 2007.
For 2008, Diebold expects revenue to grow by 6 percent to 8 percent.
Diebold shares rose 45 cents to $26.40 in early trading.
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