Beleaguered Gateway cuts another 1,500 jobs; has cut 22,600 jobs in last four years

“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

32 Comments

  1. 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!

  2. 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.

  3. 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.

  4. “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.

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