Amid PC Industry Famine, Gateway Restructures
What if everyone who already owned a car suddenly stopped buying new ones?What if everyone who already owned a car suddenly stopped buying new ones? Thats almost the situation facing the PC industry, which has been belching such a miasma of bad news that even Microsofts launch of Windows XP next month is not expected to help clear the air. "Windows XP is going to be a lot less of a stimulus than Microsoft thinks," said Roger Kay, IDCs director of client computing. The unnerving thing for PC makers is that its the only foreseeable stimulus on the horizon.
Gateway has been the most recently and most deeply wounded of the major PC players. Trying to shore up its losses, the company said last week that it will lay off 5,000 employees, or one-fourth of its work force, as part of a restructuring that CEO Ted Waitt said will return the Gateway to profitability in the fourth quarter. The PC maker also said it will pull out of Asia-Pacific regions and is considering leaving Europe.