“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