Gateway axes 2,250 staff

Gateway is laying off 2,250 of its 14,000 employees. The company is also closing 19 of its showrooms and four of its...

Gateway is laying off 2,250 of its 14,000 employees. The company is also closing 19 of its showrooms and four of its administrative and support facilities.

The PC maker will take a charge of between $75m (£53m) and $100m (£70m) for the quarter as a result but does not plan any further cuts, Joe Burke, Gateway's chief financial officer, said.

For the fourth quarter ended 31 December 2001, Gateway reported net income of $5.1m, or $0.02 per share, before extraordinary items, compared to a loss of $128.2 million or $0.40 per share during the same quarter one year ealier.

However, the company saw its revenue drop to $1.1bn, down from $2.5bn in the fourth quarter of 2000.

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