Gateway Posts Q1 Loss; will Cut Work Force by 17%

Gateway announced on Monday that its Q1 revenue would range from $820 million to $850 million, disappointing financial analysts who had expected revenues of $955.3 million. Gateway said that as a result of the reduced revenue numbers it will cut its annual operating costs by more than $400 million. The first casualty in the overhead reduction is reported to be a 17% work force reduction, equal to the elimination of approximately 1,900 jobs. Gateway also said it will close 76 of its retail stores before the end of March, for a total of 80 that will be closed in the first quarter. Number three computer manufacturer Gateway is in its third restructuring since 2000 and has posted a loss in 8 of its last 9 financial quarters.

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