Diebold is shutting down its pension plan and offering voluntary early retirement to about 1,200 eligible U.S.-based employees. The company closed its pension plan to new hires July 1, 2003, but as part of additional cost-cutting measures, has decided to freeze the plan for the people who enrolled before that.

Diebold Inc., headquartered in Canton, Ohio, provides security systems and related services. The company saw its revenue drop by 4.9 percent in the second quarter to $707.1 million. It recorded a second quarter net loss of $98.6 million or $1.55 per share.

"Clearly, the results we announced today are not in line with our capabilities and potential as a company," said Andy Mattes, Diebold president and chief executive officer.  "As we develop our turnaround strategy in the coming months, we will maintain a balanced approach in cutting cost while at the same time laying the foundation for future growth. Getting cost out of the company will also improve our cash position and enable us to invest in growing the top line."