BUSINESS: Gateway Announces Massive Layoffs

Gateway, one of the largest PC makers in the United States recently announced that they will eliminate 2,500 jobs, and close 188 of their stores. Nearly 40% of its total workforce.

"The company, which recently posted its 12th loss in 13 quarters, said it is exploring other ways to sell its wares in United States and abroad, but declined to elaborate. It said it would provide details when it releases first-quarter results on April 29.

The move comes three weeks after Gateway completed its acquisition of eMachines for $290 million and named Wayne Inouye its chief executive, the same job he held at eMachines. Inouye replaced Gateway founder Ted Waitt, who remains the company's chairman.

Gateway to close 188 stores, cut 2,500 jobs

Thanks for the post Ocelot! I'm surprised I didn't know this. There was once a time I lived and breathed by Gateway numbers when they were a client.

IMO the retail stores were a BAD IDEA to begin with. That was taking the direct sale PC industry in the wrong direction. But you can't tell Ted Waitt what to do.

If I was sitting in the middle of Nowhere, South Dakota surrounded by "yes men" and cows I'd take my own advice as gold too.

I feel REALLY bad for any South Dakota hi-tech layoffs stuck in mortage with no chance to resell in this environment.

[Edited on 2-4-2004 by RANT]

Geez, I own a Gateway that I bought online and I am really happy with it.

This is the second piece of high-tech bad news I heard today..earlier, Sun Microsystems announced it will layoff another 3,000 people.

RANT is correct, SD is noplace to be job hunting in high-tech after this big of a layoff.

john

Well I got this pc I am using right now as part of a redundancy package from Gateway when they left Ireland.
They were quite generous then, I can only hope they will be to these new unfortunates as well.

saw that coming. eMachines and their stores, terrible ideas.

I think Compaq/HP has shown the PC industry that you can't make it on home/consumer sales alone. You wont fine too many Gateways in a corporate enviroment. Their store in my town opened and closed within a year. They never stocked anything either. Remember Micron? They did great with direct sales but, like Gateway, never had any real penetration in the corp. arena though Dell is doing well with consumer and corporate sales. You must do both to survive in one of the largest commodity markets out there.