Diebold plans to eliminate jobs in Brazil and North America in an effort to adjust to changes that pulled third quarter earnings down. The cuts will affect about 75 jobs in the area.
Diebold expects to eliminate 500 jobs in Brazil and North America as part of efforts to control costs.
Company executives announced the planned cuts while talking to securities analysts about the third quarter earnings.
Diebold posted profits of $17.4 million, or 27 cents per share, which was less than half the $41.8 million, 65 cents per share, posted in the 2011 third quarter. Revenue came in flat at $709.9 million during the period, which ended Sept. 30, compared with $709.3 million last year.
For the first nine months, earnings are $89.1 million, or $1.62 per share, well ahead of the $65.1 million, or $1.36 per share, during 2011. Revenue is $2.15 billion compared with $1.98 billion last year.
Diebold announced last week that it was downgrading its third-quarter and full-year income and revenue predictions.
On Thursday, the company said it would eliminate 500 full-time and contract jobs. The cuts include a number of open jobs that won’t be filled.
Most of the cuts will be in the company’s Brazilian operations, spokesman Mike Jacobsen said. About 75 cuts will be made at Diebold’s local operations, with fewer than 50 of those positions being full-time jobs. Diebold does have local jobs it is trying to fill, Jacobsen said.
The job cuts are part of efforts to drive down costs, free resources for growth opportunities and become more cost-efficient.
Thomas W. Swidarski, president and chief executive officer, said Diebold is working to offset competitive pressures in global markets and increase investments to help the company expand.
Swidarski said profit fell considerably in Brazil because of year-to-year changes in the voting business there. The company also had two large banks in Brazil delay until next year projects for bank teller machines and related equipment.
Business is robust in North America, Swidarski said, but profit margins have changed because of a shift in the revenue mix.
Diebold saw 8 percent growth in its security business, which Swidarski called encouraging. The operation saw double-digit gains in revenue and orders for electronic security.
Diebold stock closed up 44 cents per share at $30.80 following heavier-than-usual trading.