Diebold Announces Realignment Plan, Cuts 700 Jobs
by Security Electronics and Networks | @Articles News | May 9, 2013, 7:00am AEST
The job cuts — taking place throughout the ATM banking services and electronic security systems providers’ North American operations — are part of Diebold’s plan to stabilize its financial position, as the company reportedly lost money in the first quarter this year. With this new strategy, the firm, which had nearly $US3 billion in revenue last year, expects to save $100 million to $150 million by end of 2015.
“We had a slow start to the year, but we expected it,” Michael Jacobsen, senior director of corporate communications for Diebold, tells SSI. “We have structural cost issue on the larger side of our business — the financial, self-service side. We had some cost structure issues from a competitive perspective, and that’s why we’re undertaking this realignment plan to help us seize marketplace opportunities more rapidly as we move forward.”
However, Jacobsen notes, not all business was bad for the firm. On the contrary, Diebold saw progress in its electronic security segment. The business’ enterprise security system at South Beach, Fla.-based St. Regis Bal Harbor Resort — a nine-acre oceanfront resort featuring three 27-story towers, housing 550 luxury guest and resident accommodations — recently earned the company SSI’s Integrated Installation of the Year Award. Such projects have prompted Diebold to reinvest a portion of newly generated savings to drive long-term growth and execute on electronic security and financial self-service strategies.
“There [has been] a lot of encouraging new business in the electronic security space,” Jacobsen says. “We secured a major deal with one of the top banks in the United States, a major electronic security customer on the financial side. From a corporate perspective, we’ve supporting our strategy to grow the electronic security business within the financial industry.”
Diebold also recently opened an office exclusively for its electronic security business in Green, Ohio, that employs roughly 60 people. The firm is currently seeking more personnel to help round out the business, according to Felix Gonzales, vice president of strategic and business development for electronic security, Diebold.
“The desire is to take the investment dollars and make them work in both a short-term factor in terms of hiring more leaders and associates to join the business,” he tells SSI. “It’s also about making investments in infrastructure in terms of growing the electronic security space.”
Part of those investments include growing the electronic security business organically and through acquisitions. Although Gonzales declined to state where the company is seeking to acquire, he says it is focused on growing commercial and national accounts, as many in that market are seeking a single service provider that can offer a holistic approach to security.