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Gateway takes chainsaw to costs, staff

Major cutbacks - WSJ

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Gateway, America's weakest big-name PC maker, is looking to outsourcers to help it reduce costs by $100m a year, The WSJ reports. And that means 1,000 people are to lose their jobs by October 30, according to the newspaper. Currently Gateway employs 8,700 people.

It is possible, of course, that some may be taken on by whichever companies are chosen to assemble and distribute Gateway PCs.

Gateway has been losing money hand over for fist for three years. It has responded by withdrawing from all country markets outside the US. This year it has already announced plans to cut running costs by $200m; the cuts uncovered by The WSJ today are not included in that total. ®

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