What is in this article?:
- Diebold Cutting 700 Jobs as Part of Realignment Plan
- Realignment Plan
"The process of change management is challenging, and it entails making difficult decision," said George S. Mayes Jr., Diebold executive vice president and chief operating officer.
NORTH CANTON, Ohio -- Diebold Inc. today announced a multi-year global realignment plan that entails the elimination of 700 jobs.
The cuts will reduce the company’s cost structure by $100 million to $150 million, the company said.
"The process of change management is challenging, and it entails making difficult decision. These difficult but necessary actions represent significant changes to our overall cost structure and organization,” George S. Mayes Jr., Diebold executive vice president and chief operating officer, said in a news release. “We have performed a thorough review of our current and future business requirements and have identified the changes that will support our long-term strategies to maximize cash flow, enable continued growth and drive shareholder value."
The news comes as Diebold, a supplier of self-service delivery and security systems and services, released its 2013 first quarter earnings, which revealed a $13.4 million loss, or 21 cents per share, for the quarter. Diebold attributed the losses to “the dramatic shift in North America from higher-margin regional accounts to lower-margin national accounts.”
Diebold projects the realignment plan, which it initiated late in the fourth quarter, will be completed by the end of 2014, with total savings realized by the end of 2015. It already implemented $60 million of the overall savings plan, beginning in the late fourth quarter.