DAYTON NCR announces plans to lay off 1,500

Despite profits, NCR says it must become more efficient.
DAYTON (AP) -- NCR Corp. said it plans to eliminate 1,500 jobs -- 5 percent of its work force -- over the next six months to streamline operations.
The cuts will include 200 jobs in Dayton, said John Hourigan, spokesman for the Dayton-based computer-services company. NCR employs 30,500 workers in more than 100 countries, including 3,000 at its headquarters.
Workers were notified of the cuts Tuesday, Hourigan said, but not all the jobs to be eliminated have been identified. However, he said the cuts will affect all areas of the company's operations.
Kartik Mehta, an analyst with Midwest Research, said NCR is trying to navigate through rocky times for its customers in the retail industry.
"It probably does make sense," Mehta said of the cuts. "They're trying to do all the right things. They'd like to streamline the operations as much as they can."
NCR said last month that increased business for its data warehousing unit led to higher earnings in the third quarter. For the quarter ended Sept. 30, NCR earned $41 million, or 42 cents a share. Analysts surveyed by Thomson First Call had projected earnings of 34 cents per share.
Business units
Data warehouses are computer database systems that enable retailers and other companies to tap large stores of information and get quick answers to complex queries about their inventories and other aspects of their business.
NCR also makes automated teller machines and electronic checkout scanners for retailers.
"They're trying to reposition themselves in the market, especially in the manufacture of ATMs and in retail sales," said Robert Premus, professor of economics at Wright State University. "The only way to compete is to be more efficient."
Premus called the cuts a "pre-emptive," competitive strategy.
"If the economy is still pretty flat, this is the time to do it," he said. "I don't think it's going to have a serious effect on our [local] economy."
City officials weren't so sure. Dayton's income tax collections are down 5.6 percent compared with the same time last year.
"A layoff of 200 for a company inside the city of Dayton is a significant hit for us," said Barbara LaBrier, acting director of management and budget.
She said she hopes the downsizing will strengthen NCR in the long term.
"NCR is still working to make sure that they are a successful company," said Phil Parker, president of the Dayton Area Chamber of Commerce. "We're still in challenging times. I just think they're being a very prudent business."