“On Thursday, Poway, Calif.-based Gateway said it would cut another 1,500 jobs, less than a month after it closed its 188 retail stores and eliminated 2,500 positions. Gateway expects to end the year with about 2,000 employees, down from 7,400 at the end of last year and 24,600 at the end of 2000,” Elliot Spagat reports for The Associated Press.
“Gateway didn’t say which departments would be affected by the job cuts. A spokesman, Robert Sherbin, said they would be spread across all locations. The company has significant operations in North Sioux City, S.D., Kansas City, Mo., and Lakewood, Colo.,” Spagat reports. “Gateway posted a preliminary loss of $165.5 million, or 49 cents a share, in the first quarter, compared with a loss of $200.5 million, or 62 cents a share, the same period last year. The latest period included charges of $81 million for store closures and $23 million in other restructuring expenses, related primarily to outsourcing, and a tax benefit of $13 million.”
“Excluding those items, Gateway posted a loss of $75 million, or 22 cents a share. Analysts polled by Thomson First Call projected a loss of 20 cents a share,” Spagat reports.
Full article here.
MacDailyNews Take: You’d think Gateway would merit a “Pray” cover from Wired by now, at least.
Related MacDailyNews articles:
Beleaguered Gateway grinds up customer and spits him out unsatisfied – April 02, 2004
Beleaguered Gateway closes all retail stores; Apple poised to open 77th outlet – April 01, 2004
Beleaguered Gateway to axe over 2,000 jobs in next few months – March 03, 2004
Beleaguered Gateway to buy eMachines; combo could be 3rd largest Wintel box assembler – January 31, 2004
Beleaguered Gateway cuts more jobs; closes Virginia manufacturing plant – September 03, 2003
Beleaguered Gateway puts on a happy face – December 16, 2002
Beleaguered Gateway ditches cow on its way to slaughterhouse – October 31, 2002
Beleaguered Gateway desperately circling the drain – September 25, 2002
But remember, this will make Gateway a stronger, leaner company, well poised for world domination and massive profits.
� Rob Enderle
I know this is off subject a litle, but how many employees does Apple currently have? Always kinda just wondered. Thanks!
But Gateway is keeping PC marketshare up! Funny that they trash Apple for it’s ‘small’ marketshare ignoring the great profits while just about every PC maker is loosing money and jobs.
You can only sell a product at a loss for so long before they bank account runs dry. Marketshare is meaningless if your broke.
How will they make up for selling at less than cost? Volume!
http://www.google.com/search?hl=en&lr;=&ie=UTF-8&oe=UTF-8&prev;=/search?q=aapl&hl=en&lr=&ie=UTF-8&oe=UTF-8&q=stocks:AAPL+
About 11,000 dopple
Just about every pc maker is losing money? Certainly not the one that counts:
http://www.google.com/search?hl=en&lr;=&ie=UTF-8&oe=UTF-8&prev;=/search?q=dell&hl=en&lr=&ie=UTF-8&oe=UTF-8&q=stocks:DELL+
Compare profit margin and efficiency to aapl:
http://www.google.com/search?hl=en&lr;=&ie=UTF-8&oe=UTF-8&prev;=/search?q=aapl&hl=en&lr=&ie=UTF-8&oe=UTF-8&q=stocks:AAPL+
Try to keep wild assertions on a leash Jerry.
Gateway management showed their brains when they spent big dollars advertising their animated computer performing jumps over the iMac. Even though it was pooping Apple, it was a good competitive commercial…problem is…Gateways primary competition isn’t Apple, it is/was Dell, HP, then Emachines, etc.
This commercial showed that Gateway management didn’t have a clue where to spend their dollars.
It really is a shame that they are falling so fast…it seemed a better quality machine than Dell’s plastic and with them spinning the slow spiraling flush of death, it just gives more power and monopoly to Dell. Good quality competition is good for us consumers.
Gateway’s last big layoff caused a pop in stock price, almost 25%, this one a bad dump, almost 10% on the day.
That can’t be good.
what does that mean any way getaway?
what does ir sell??
No death calls yet?
1500 down, 2000 more to go.
Title the article, ‘When bad companies happen to good people.’
I like writing articles about Apple, because I love their stuff, but maybe I should write a piece about the sad state of corporate resposibility in America. Gateway would be a great example to use.
Joe,
Could you please use <a href=”url”>text</a> tag when you include the links? Long URLs make the page extra wide.
‘No death calls yet?’
[url=http://www.fuckedcompany.com]http://www.fuckedcompany.com[/url]
Nobody, just for interest, how did you just type that without it rendering as an HTML link?
“It really is a shame that they are falling so fast…it seemed a better quality machine than Dell’s plastic and … “ – Newmanstein
If I have to choose between Dell and Gateway, I take Dell anytime. I don’t even like Dell. If I have to use Windows, I’d go for HP or IBM.
Don’t worry, I just checked out the page source. Very clever. <
By using HTML Coded character
<a href=”url”>text</a> is rendered as <a href=”url”>text</a>
Actually Apple did do some of the things that wired suggested. i think thee biggest one was Take advantage of NeXT’s easy and powerful OpenStep programming tools to entice a new generation of Mac software developers. This has turned Apple round
Sorry Nobody, I see what you mean.
html knowledge has eluded me. Please tell me where and how to include your tag.
Thanks.
Joe,
No apology is needed. Use the HTML tag wherever you want to insert clickable text. Replace url with your URL, and text with your description of the link. For example:
Click <a href=”www.macdailynews.com”>MacDailyNews</a>
will be rendered as
Click MacDailyNews
“just about every PC maker is loosing money and jobs.”
Hey Joe, “just about” means “just about” not every single one. For example, $999,999.99 is “just about” one million dollars. So there was nothing inaccurate about what Jerry said. Certainly not a wild assertion. You do realize that Apple and Dell are the ONLY companies that are making money selling computers right now, right?
Gateway is dying! PC companies come and go and Apple remains.
Apple carved out the best chunk of the personal computing market for itself and left the rest for the scrounger dogs to fight over.
If you want to learn html, do a google search, there are tons of places to learn how to do it.
You are running Folding@home and using your spare computer cycles to help cure the world of disease? Team Mac OS X
Nobody, more respect. Now you’re typing the characters that should render as the characters that make up the html tag!!!
My brain hurts after writing that sentence.
Language, you are right, Dell is just one company.
otoh, I don’t know how many pc companies are losing money. Gateway’s retail store chain killed them, and I don’t know of any other company, other than apple, with that setup. I would like to find out if Jerry’s assertion is true. Assuming it is, from an Applecentric point of view, doesn’t satisfy me, no matter how many times it is repeated here.
Thanks Nobuddy! I have saved your info and will do that in the future.
Just to get started, I checked out toshiba, acer, and hp. They all made profits in their last year end statement. Obviously, whether toshiba and hp make profits on their COMPUTERS is not known, since they make a lot of other stuff.
Of course, the same can be said for Apple, which seems to be much more of a music player manufacturer than a computer maker these days, doesn’t it?
ooooh man apple wishes to have their marketshare though.. pffft..
for once and for all, let’s stop using that primitive stat as measurement for market strength (boxes purchased per quarter, as compared to the rest of the industry, as a percentage)