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Gateway to Slash Nearly 5,000 Jobs

August 28, 2001

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SAN DIEGO (AP) _ Gateway, the nation’s No. 4 manufacturer of personal computers, said Tuesday it is laying off about 5,000 employees _ around one-quarter of its global work force _ because of an increasingly bleak market.

The moves will help the company save $300 million. Gateway has a work force of about 19,000.

The company said it now expects to return to profitability in the fourth quarter. Previously, officials said they did not expect that to happen until fiscal 2002.

Shares of Gateway rose 3 percent to $8.86 in after-hours trading, adding to a 10-cent gain during the regular session on the New York Stock Exchange.

``As tough as these decisions were to make, we’re doing all the right things to create a new company with a unique competitive edge and a healthy, profitable future,″ said Ted Waitt, Gateway’s chairman and CEO. ``We’re planning to win by building a lean, nimble organization that is unified and focused on our customer base unlike any other time in our history.″

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