Beleaguered Gateway to axe over 2,000 jobs in next few months

“Gateway Inc. expects to cut more than 2,000 jobs in the next few months, according to Chief Financial Officer Roderick Sherwood,” The Associated Press reports.

“Sherwood told a presentation Monday at the Morgan Stanley Semiconductor & Systems Conference that once the merger with eMachines Inc. is complete, the headcount is projected to be in the mid-5,000 range, down from the 7,400 employees Gateway had at year’s end,” AP reports. “In late January, Gateway announced plans to acquire eMachines for about $235 million in cash and stock.”

Full article here.

40 Comments

  1. They’ve just gone through a merger. Every company lays off staff when this happens, if only to justify to shareholders that the Board is going to deliver on the promised cost cuts. Still, 2000 people, that’s a large headcount.

  2. When Apple was down, everybody and their mother kicked them squarely in the face. Turnabout is fair play (Fairplay, get it?). Hence the use of “beleaguered” by MDN – the media past favorite adjective for Apple.

    Those who read MDN daily understand why this story is here and why the headline reads as it does. Inside joke.

  3. I’m just wondering now where all of the death knell predictions are for Gateway. God knows if Apple laid off 2,000 workers, they’d be all over the mainstream press…

  4. The mainstream press doesn’t care about an irrelevant company like Gateway. Such news about relevant Apple, however, would affect the entire computer industry.

  5. No offense, but y’all are a bunch of fucking assholes.

    2,000 people losing their jobs isn’t funny, or a reason for gloating.

    Nor is this news a surprise–Gatway has been hurting for a while, and living off the cow boxes to sell machines that weren’t made very well.

  6. Fred! Fred! That’s ridiculous! (take from I Love Lucy). Actually, it doesn’t necessarily matter if GW is truly accountable or not. People who lose their jobs are generally unhappy with the status quo. That’s why incumbents like to have a robust economy and low unemployment around election time. Sometimes they even try to push things along with extra tax cuts and such ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  7. Gene,

    In the role of eternal optimist, one way to look at this phenomenon is that it reflects the real importance of Apple and its tecnological leadership in the industry. If Gateway goes belly up, so what? It’s just one more uninspired and uninspiring PC cloner. But if Apple truly were in trouble that would be a catastrophic loss to the industry. Who be around to do all the R & D?

  8. Maybe the 2,000 people could get a job at Redmond, I hear they’re recruiting people to help build their new OS, codename LongWait. No experience in programming necessary, just get a shitty ‘new’ OS out ASAP!

    Sorry if I offended anyone (anyone apart from Mr. Bill Gates that is, I don’t care much for your company Mr. Gates, or you for that matter), if it makes you feel better I got laid off 6 months ago but managed to get another job.

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