Gateway: Profitability Next Year--Seriously

At beleaguered PC maker Gateway, the bad news just keeps on coming. The company just reported a larger-than-expected loss for the most recent quarter and now expects to lay off an additional 1500 people, dropping its total workforce to just 2500 people. The company lost $166 million on revenues of $868 million, $104 million of which was associated with the closing of the Gateway's 188 retail stores. Now the company hopes to gain a presence with retail stores such as Best Buy and Circuit City, thanks to its recent purchase of eMachines, which already sold machines in those stores. But Gateway won't return to profitability until at least next year. And at this time last year, the company had more than 7500 employees. Yikes

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.