NCR To Lay Off 1,500 Workers

NCR said yesterday that it is taking steps to exit thecomputer hardware business and will focus instead on its data warehousing, automated teller machine, and retail store automation system businesses. The company said it will lay off some 1,500 workers as it restructures its hardware-based Channel Delivery Solutions business.

NCR will take a $200 million to $250 million charge in its current quarter ending Dec. 31 to cover costs associated with employee separation, facility consolidation, customer obligations, and other expenses. The vendor expects to realize annual savings of some $75 million through the move.

Last week NCR reported that worldwide revenues in its third quarter ended Sept. 30 were down 2%, largely because of declining sales of commodity computer hardware. In contrast, the vendor reported sales gains in ATM and retail store systems, though data warehousing software sales were down because of what the company described as "weakness" in the financial industry.