In view of its business performance, Wincor Nixdorf has initiated a process of strategic realignment with regard to its activities and has launched an extensive restructuring program. Among other measures, the staff headcount in western Europe in particular is to be downsized by more than five hundred; Germany will account for around half of this figure. The aim of restructuring is to extend and substantially strengthen global competitiveness, as well as targeting business activities at the emerging markets faster and in a more pronounced manner. To this end, Wincor Nixdorf will significantly tighten the management, support, and administrative functions of its international business organization. Within this context, the Company will be looking to establish new, more effective groups comprising several countries in order to increase the critical mass required for the expansion of its solutions business in all regions. At the same time, Wincor Nixdorf is committed to strengthening its customer focus as well as honing its capabilities for the purpose of marketing its portfolio in a solution-driven manner. This is to be achieved by taking a more direct approach when it comes to structuring the responsibilities for the global banking and retail business.
In parallel, the Company will relocate to the Asia/Pacific region key capacities required for future growth in the emerging markets. As part of this process, development activities in the region are to be further expanded, while those located in Europe are to be scaled back. In taking this route, the Company will be looking to develop hardware for the emerging markets in particular, as well as establishing an appropriately targeted portfolio of products and services as soon as possible. Additionally, in future a larger proportion of products within the existing portfolio is to be manufactured in China, while at the same time production capacities in Germany are to be adjusted accordingly.
The downsizing measures are to be implemented in two stages, with one half of the staff reduction taking place in the current 2011/2012 fiscal year and the other half in the coming 2012/2013 fiscal year. As regards the total headcount of those employed within the Group, there are likely to be contrary effects due to the recruitment of additional personnel in areas of significant growth, such as Software/Services, but also in growth regions.