Gateway could cut work force by half (2,000 jobs) [View All]

[UpInArms]

http://news.com.com/2100-1041_3-5196190.html?tag=nefd.lede

Hoping to turn a profit by year's end, Gateway executives are crafting a restructuring plan that could reduce the company's product lines and, in a worst- case scenario, slash its work force by half, sources familiar with the plans told CNET News.com.

The discussions, which are being led by new CEO Wayne Inouye, are aimed at altering Gateway's costly operations to bring them more in line with the business model of eMachines, which Gateway acquired in March.

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In a memo to employees last week, Gateway Chief Administrative Officer Adam Anderson noted that speculation about more layoffs is creating anxiety but the company has no choice.

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As part of its planning, Gateway management is evaluating at least one scenario that would cut its work force to approximately 2,000 employees, about half of its current figure of 4,000, according to sources. It was only three weeks ago that Gateway said it would eliminate 2,500 jobs, or nearly 40 percent of its work force, to get to the 4,000 mark.

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