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Monday, 10 September, 2001, 17:44 GMT 18:44 UK
Gateway shuts European headquarters
Personal Computers ready to be shipped
The troubled computer maker Gateway has confirmed that 1,050 of its previously announced job cuts will fall in Ireland and the UK.

At the end of last month, Gateway said it would shed 4,600 staff - one quarter of its global workforce - and close key operations outside of the US.

We are planning to win by building a lean, nimble organisation that is focused on our customer base

Ted Waitt
Gateway chief
And it has now confirmed that all operations in the UK and Ireland will be abandoned, axing 900 workers in Dublin - its European headquarters - and 150 in the UK.

In a radical restructuring, Gateway has already announced that it is to close its arms in Malaysia, Singapore, Japan, Australia and New Zealand in order to focus on its core business in the US.

Deserting Europe

The closure of its Dublin plant and of 14 retail stores around the UK marks the end of Gateway's presence in Europe.

"All sales activities have ceased. We do continue and will continue to provide service and support to the customers who have Gateway products," said Gateway spokeswoman Donna Kather.

The firm has already pulled out of Spain, Germany and Sweden.

Gateway racked up losses of $9m in the second quarter of the year as sales around the world dwindled.

The firm has suffered from weak demand and an intense price war with its rivals such as Compaq and Dell.

US workers also suffer

The US has not escaped the redundancies, with the firm cutting 15% of its US workforce and closing call centres in four states and a US manufacturing plant in Utah.

"We are doing all the right things to create a new company with a unique competitive edge and a healthy, profitable future," said Gateway chief Ted Waitt, admitting that the decisions had been tough to make.

The restructuring will incur a charge of about $475m in the third quarter of the year, but should then save the company $300m a year.

"We are planning to win by building a lean, nimble organisation that is unified and focused on our customer base," said Mr Waitt when first announcing the job cuts.

See also:

04 Jan 01 | Business
PC sales fall in US
25 Jul 01 | Business
Sharp fall for Compaq profits
06 Mar 01 | Business
PC price war escalates
20 Jul 01 | Business
Global PC sales slump
22 Jan 01 | Business
Dell warns on profits
29 Aug 01 | Business
Gateway faces uncertain future
03 Aug 01 | Business
Tough times for PC firms
29 Aug 01 | Business
Gateway slashes its workforce
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