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VeriFone Systems Inc. has confirmed layoff plans after announcing weak Q2 results and a downbeat revenue forecast today. The big question: Is VeriFone struggling on its own, or has the retail technology vertical somehow stumbled in recent months?
VeriFone makes point of sale (PoS) payment systems, but has pushing toward so-called omni-commerce -- which involves media on terminals, pay-with-points, beacon networks and card-linked offers, among other emerging applications. The company's channel partner program works closely with integrators across multiple areas of expertise.
VeriFone surprised Wall Street today with a weak revenue forecast. For the current quarter, the company expects revenue of $515 million, and earnings per share (EPS) on a non-GAAP basis of 40 cents. That compares to previous Wall Street expectations of $551 million and 59 cents a share, Barron's reported.
Investors reacted swiftly. VeriFone's stock (PAY) is down a brutal 28 percent in after hours trading.
![Paul Galant](https://image-optimizer.cyberriskalliance.com/unsafe/576x0/https://files.scmagazine.com/wp-content/uploads/2023/08/paul-galant-1.jpg)
VeriFone CEO Paul Galant confirmed layoff plans but did not disclose a specific headcount number. The layoffs will save about $30 million in 2017, he said. "We are aggressively executing mitigating actions including a headcount restructuring and a review of underperforming businesses," Galant said in the announcement.
![Bill Nuti](https://image-optimizer.cyberriskalliance.com/unsafe/576x0/https://files.scmagazine.com/wp-content/uploads/2023/08/bill-nuti-1.jpg)
Meanwhile, pundits are wondering if VeriFone rivals have also witnessed sales issues in recent weeks. Anecdotal evidence from NCR suggests the retail point of sale (PoS) market remains healthy. During a late April 2016 earnings statement, NCR CEO Bill Nuti said 2016 was off to a good start. NCR has diversified beyond traditional PoS offerings to push deeper into SaaS and omni-channel sales solutions.
VeriFone joins a lengthy list of technology companies experiencing layoffs and staff cuts in 2016.