German ATM maker Wincor Nixdorf will spin off its cashless payments business after announcing it has missed its sales and operating profit guidance for the year.
The ATM maker also announced on Thursday that it will cut 12 per cent of its workforce as part of the restructuring plans.
The company is blaming deteriorating business in Russia and China, as well as sluggish recover in European investment and eroding hardware prices for falling profits.
Wincor Nixdorf will now focus on software and high-end IT services, reducing its hardware businesses and spinning off cashless payments, Reuters reported.
Its cashless payments business is expected to generate 50 million euros in sales this fiscal year, just a fraction of Wincor’s annual sales of around 2.4 million euros.
However, the cashless payments market is growing rapidly, and Wincor wants to complete the spin-off to create a flexible company for a fast-moving market.
“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.
The company’s restructuring plans will cut 1,100 jobs, or 12 per cent of its workforce, hoping this will result in a 120 million boost in earnings in the 2017-2018 fiscal year.
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