“Gateway will cut at least 450 more jobs and outsource more of its PC manufacturing to third parties as it tries to streamline its distribution system and return to profitability,” John G. Spooner reports for CNET News.com. “The company on Wednesday said it will close its manufacturing plant in Hampton, Va., and work with more third parties in an effort to cut costs and improve logistics by establishing a number of local hubs for distributing and servicing its products inside and outside of the United States.”
“‘We are going to combine our own manufacturing and service capabilities with a rapidly expanding network of new and existing partners,’ Rod Sherwood, Gateway’s CFO, said at an investor conference Wednesday morning. ‘We believe this will give us a significant advantage.’ Gateway will take a charge of between $120 million and $160 million over the next few quarters to cover the plant closing, job cuts and other changes. But it expects to save between $115 million and $130 million per year as a result,” Spooner reports. “The company has cut more than 1,900 jobs and closed 80 retail stores since the beginning of this year as part of its cost-cutting efforts.”
Full article here.