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Gateway to Cut 2,250 Jobs

January 24, 2002

SAN DIEGO (AP) _ Gateway Inc., the nation’s fourth-largest computer maker, announced Thursday that it will eliminate 2,250 jobs around the country in an effort to cut costs amid reduced sales and a shrinking share of the U.S. market.

The company will also eliminate offices in Southern California, Massachusetts, New Mexico and Colorado and close 19 of its Country Stores in nine states.

Gateway, which cut 5,000 workers last year, or nearly a quarter of its work force, does not expect any more layoffs this year, chief financial officer Joe Burke said.

``We think this gets us to the right level,″ he said.

The cuts came as the company reported a net profit of $9.4 million, or 3 cents per share, reversing a year ago loss of $128 million, or 40 cents per share.

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