How did GTW mess up so badly and what does this mean for AMD?
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Gateway mulling exit in Asia, Europe
By Tim Eaton, CBS MarketWatch
Last Update: 4:33 PM ET Aug. 8, 2001
SAN DIEGO (CBS.MW) -- Gateway Inc. said Wednesday that it is considering abandoning its overseas operations and laying off 2,500 workers as the computer seller seeks to add a services-oriented business component.
Last month, Gateway (GTW: news, chart) said it was looking at all aspects of the business to ensure that each will be able to operate in the envisioned service-oriented arena, which will offer IT training and other services.
"At this point we are proposing closing Ireland, the U.K.," said Donna Kather, a company spokeswoman.
She also said that the company is in the process of evaluating whether or not to close other international operations based on their ability to adapt to the company's new business track.
But she added that the company does not have any immediate plans to close any facilities.
"We know we can be successful with [the services-oriented business plan] in the U.S.," said Kather. "But we're not sure that they can be successful in foreign markets."
Gateway, which operated facilities in Australia, Asia and Europe, began a formal consultative process in the United Kingdom and Ireland that will look into the feasibility of pursuing their new business model. Kather said that formal process is mandated by law in the U.K. and Ireland and will take between 30 to 90 days.
The other European counties in which Gateway has operations do not require a formal review process, nor do governments in Australia, Malaysia and Japan. But Kather said that all international locations are being considered for "major restructuring or withdrawal."
Kather would not speculate on the future of any of the overseas facilities.
Shares of Gateway fell 1 percent to $11.09 during the regular session, then rebounded to $11.25 in after-hours trading. |
