Gateway Closes More Stores, Lays Off 1,900

 
 
By Jeffrey Burt  |  Posted 2003-03-18 Email Print this article Print
 
 
 
 
 
 
 

In its effort to return to profitability, Gateway closes 76 more stores and announces more layoffs.

Gateway Inc. is closing 76 more of its Gateway Country Stores and laying off 1,900 more workers in its effort to pare expenses and return to profitability. Officials with the Poway, Calif., computer maker on Monday said the measures were the latest moves to reduce costs by more than $400 million, with at least half of that coming through cost cuts. The current cuts will come out to between $75 million and $80 million.
Gateway began informing the laid-off workers Monday, and the stores—which combined with the four that were closed in January brings the total amount closed in the first quarter to 80—will shut down March 24. That will leave the company with 192 stores nationwide.
Going forward, Gateway officials said they will continue the expansion of the companys product line into new areas. In its business segment, officials said it will relaunch its server and storage line in April and grow its mobile computing line by adding tablet and convertible PCs and handheld devices. Gateway already has broadened its range of consumer products. Last year the company started selling plasma TVs, and this year will add other audio and video products. "Were taking the tough but necessary steps to continue our transformation and get back to healthy growth," Chairman and CEO Ted Waitt said in a prepared statement. "We have the right team and the right level of urgency to get it done fast. The result will be a much better Gateway, one thats going to lead the industry with the best products, the best value and the best customer experience in the marketplace."
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