German ATM maker Wincor Nixdorf is planning to spin off its cashless payments business and slash 12% of its workforce as part of its restructuring plan.
The cashless payments business is expected to generate new sales of EUR50m this fiscal year.
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The company has spin off the unit into an independent operation to create a flexible company to respond to this fast-moving market.
Wincor Nixdorf said that it is also planning to focus on software and high-end IT services and shrink its hardware business.
The company is also addressing the issue of deteriorating business conditions in key emerging markets such as Russia and China as well as the sluggish recovery in investment spending throughout Europe.
As part of the restructuring programme, Wincor Nixdorf will cut its current headcount by around 1,100 (12%) over the next three years including 500 employees in Germany and 250 in other European countries.
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By GlobalDataThe restructuring aims to achieve a positive effect on earnings equivalent to EUR120m in fiscal 2017/2018.
"This may serve, for example, as a platform for partnerships or collaborative activities in the payment market or to facilitate investment opportunities," the company said in a statement.
