Gateway to cut 17 percent of work force

Zardon · Mar 18, 2003, 12:01 AM

POWAY, Calif. (Reuters) - Gateway Inc., the third largest U.S. personal computer maker, said on Monday it would cut 1,900 positions, or 17 percent of its work force, as part of its drive to cut costs by more than $400 million a year.

Gateway, in its third restructuring since 2000, said it will close 76 stores by March 24, raising the number of underperforming stores the computer maker will have closed in its first quarter to 80.

Gateway said the actions will cost between $75 million and $80 million, likely reflected as an operating expense in the first quarter. The cash component of the cost is expected to be about $10 million this quarter.

Gateway, of Poway, California , has posted losses in eight of the last nine quarters amid a soft economy, sluggish PC sales and stiff competition with rivals Dell Computer Corp. and Hewlett-Packard Co.

Mar 18, 2003, 12:01 AM	#1
Zardon DriverHeaven Founder Join Date: May 2002 Posts: 32,480 Rep Power: 177	Gateway to cut 17 percent of work force POWAY, Calif. (Reuters) - Gateway Inc., the third largest U.S. personal computer maker, said on Monday it would cut 1,900 positions, or 17 percent of its work force, as part of its drive to cut costs by more than $400 million a year. Gateway, in its third restructuring since 2000, said it will close 76 stores by March 24, raising the number of underperforming stores the computer maker will have closed in its first quarter to 80. Gateway said the actions will cost between $75 million and $80 million, likely reflected as an operating expense in the first quarter. The cash component of the cost is expected to be about $10 million this quarter. Gateway, of Poway, California , has posted losses in eight of the last nine quarters amid a soft economy, sluggish PC sales and stiff competition with rivals Dell Computer Corp. and Hewlett-Packard Co.