Diebold to reduce work force

NORTH CANTON, Ohio (AP) — Diebold Inc. said Wednesday it plans to cut about 800 jobs, or 5 percent of its global work force, because deteriorating credit markets within the U.S. banking industry may mean fewer ATMs are needed.

The company — which makes ATMs, business security systems and voting machines — said it expects cuts in North America, Brazil and Western Europe.

Thomas W. Swidarski, Diebold president and chief executive, said “the deteriorating condition of the credit markets within the U.S. bank industry will likely result in reduced capital investment in branch construction — which would negatively impact our financial self-service and security businesses in 2008.”

The job cuts are in addition to Diebold’s ongoing $100 million cost-reduction program.

Diebold, meanwhile, said changes in how it will report revenue will result in a $31 million increase in revenue in 2007 and $27 million in 2006. The new method will decrease revenue by $190 million in the years before 2006.

Diebold’s financial results have been on hold while it was in discussions with federal regulators concerning the company’s practice of recognizing some revenue on a “bill and hold” basis in its North America business segment.

In its revised revenue accounting, Diebold will recognize revenue once the sold product is delivered and operating. But if Diebold is not contractually responsible for the installation, the company will continue to recognize revenue upon shipment of the products to a customer location.