Gateway shuts down in Australia

Computer giant Gateway will immediately close operations in Australia, New Zealand, Malaysia, Singapore and Japan as it axes a quarter of its 24,600 global staff.

In a dramatic worldwide retreat, Gateway said it would also decide within 30 days whether to withdraw from Europe as it focuses instead on slimmed-down US operations in the face of falling sales.

Gateway lost $US9 million ($17.03 million) in the second quarter of this year as the slumping computer market sent sales plunging to $US1.5 billion from $US2.207 billion (down to $2.84 billion from $4.18 billion) a year earlier.

The sweeping restructure will reduce US staff ranks by 15 per cent and the global work force by 25 per cent.

"As tough as these decisions were to make, we are doing all the right things to create a new company with a uniquecompetitive edge and a healthy, profitable future," said Gateway chairman and chief executive Ted Waitt in a statement.

"As a result, the company announced it will immediately close all of its company-owned operations in Malaysia, Singapore,Japan, Australia and New Zealand.

"The company is currently engaged in the employee consultation process in key European markets regarding a proposal toexit those markets as well," the statement said.

The restructuring would likely lead to a one-off charge of about $US475 million ($898.77 million) in the third quarter ofthis year, including $150 million in cash, it said.

But a $US300 million ($567.64 million) in costs and expenses would be saved every year, Gateway forecast.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sandra Van Dijk

Computerworld
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?