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Gateway Continues Shedding Jobs

3/03/2004 02:00:00 AM Eastern

Poway, Calif. — A Gateway Computer executive revealed Tuesday that the company has continued to cut its headcount and expects to cut its headcount by 1,500 people by June.

This news was given during the Morgan Stanley Semiconductor & Systems Web Conference. The layoffs are considered an extension of Gateway’s restructuring plan that was implemented last fall. The upcoming force reduction will be piled on top of the 1,000 jobs already shed by the company since late 2003, said Gateway CFO Rod Sherwood.

Sherwood said the layoffs were the end result of the company continuing its effort to outsource work. He could not say if the impending merger with entry-level PC maker eMachines, scheduled to take place late during the week of March 8, will result in additional layoffs.

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