JUNE 1, 2023 — CHAPTER 11 BANKRUPTCY
Employees should look forward to organizational changes and a further reduction in force.
“Diebold Nixdorf announced it has entered into a restructuring support agreement with certain of its key financial stakeholders to effectuate a comprehensive debt restructuring transaction that is intended to be completed efficiently and quickly.”
“The restructuring is expected to significantly reduce debt and leverage levels and provide substantial additional liquidity to support seamless ongoing operations and establish a long-term, sustainable capital structure for the Company. The Company will continue to pay vendors and suppliers through the expected restructuring process in the ordinary course of business.”
“The restructuring support agreement contemplates the effectuation of a deleveraging transaction through, among other things, (i) a pre-packaged chapter 11 plan of reorganization to be filed by the Company and certain of its subsidiaries (collectively, the "Debtors") contemporaneously with the commencement by the Debtors of voluntary cases under chapter 11 of title 11 of the U.S. Bankruptcy Code, (ii) a scheme of arrangement to be filed by Diebold Nixdorf Dutch Holding B.V. (the "Dutch Issuer") and certain of the Company's subsidiaries contemporaneously with the commencement by Dutch Issuer of voluntary scheme proceedings under the Dutch Act on Confirmation of Extrajudicial Plans and (iii) recognition of such scheme of arrangement pursuant to a case commenced under chapter 15 of the U.S. Bankruptcy Code by the Dutch Issuer.”
NOVEMBER 7, 2018 — Original post…
Canton, Ohio-based Diebold Nixdorf, a maker of financial point-of-sale systems and ATMs has confirmed that their restructuring and cost-containment program named DN Now will result in approximately 1,600 layoffs, thinning the ranks of middle managers.
In responding to a question about headcount reductions from JPMorgan Securities analyst Paul Coster, “… And my other question is on the headcount reductions. Can you just talk to us about whether it's surgical or whether it's across the board? And I guess we're generally speaking kind of feel better if there were discrete functions being cut out or discrete products. But I think you get what I'm aiming at here, perhaps you can elaborate?”
DN CEO Gerrard B. Schmid responded, “Yes, sure. So let me just start at a high level. A lot of the focus of that effort has been to impact non-customer-facing roles. So we have not impacted our frontline services technicians or our frontline sales force. We've really been looking at middle management roles in particular. There are roughly 1,600 people that are impacted by this effort. And as I said, 85% have exit dates. The work has been both surgical and across the board. This wasn't a blunt instrument approach that we adopted. It was a very, very analytical thoughtful look at spans of control, and levels of management across the board.
Schmid went on to say, “We expect stronger cost savings from the new operating model we implemented during the quarter, and we also initiated a services modernization plan designed to improve service levels, enhance profitability and increase customer satisfaction. When combined with the actions we are taking to simplify our product portfolio, we are increasing our savings target to approximately $250 million annually by the end of 2021. We are also driving several other operational initiatives to improve our net working capital and efficiency levels, and expect these to add further savings in future quarters.”
Happy talk to Wall Street from a company that has recently reported a 38-year low, a 52-week stock price that fell from $22 to $3.42 on top of continuing losses of $212.6 million for the quarter ending September 30, 2018, which does not compare favorably with a loss of $36 million a year ago.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?