NCR drops bank branch service business

Struggling NCR said it was handing out termination notices to 1,500 workers worldwide, representing 4.5 per cent of the company’s work force of 33,000. NCR said it was getting out of the bank automation services because products cannot be marketed worldwide with most countries requiring customized software for bank branch functions such as call centers or acount processing.

NCR, instead, will focus on automatic teller machines, retail store automation and data warehousing. NCR is the top producer of ATMs and second only to IBM in retail store automation systems. Data warehouses are large computer systems that track vast amounts of information. Wal-Mart Stores, America’s largest retail chain, uses NCR data warehouses to track every sales transaction at every store to better manage inventories and spot customer trends.

Last month, another 1,200 technicians who repair ATM machines were offered early retirement and severance. NCR vice president Sajid Malhotra said the restructuring program would cost NCR $250 million in the fourth quarter.