Gateway announced that it will close 188 of its retail stores next week and lay off about 2,500 employees associated with the shops, or nearly 40 percent of its work force.

Analysts had been seeing it coming when they viewed the retail outlets were in conflict with Gateway's efforts to form relationships with third-party retailers, which could carry Gateway-brand PCs and consumer electronics gear.

Analysts said Gateway's 2003 revenue was $3.4 billion with $450,000 per employee (7,500 total at the time). Compare that to eMachine's nearly $8 million in revenue per worker, with $1.1 billion in overall revenue and 138 employees.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved