Gateway Restructuring Means Cutbacks
By Natalie Hope McDonald
CompUSA has experienced success being a cross between a big-box retailer and a consumer electronics retailer that knows computers inside and out. Gateway took notice. The computer manufacturer, known for it's competitive interests against Dell in the custom market, announced a rehaul of its retail operations this month which effects its 268 retail locations nationwide.
The rebuilding starts with cutbacks, including almost 80 store closings and layoffs. But according to Gateway financial reports, the scale down is designed to regenerate millions in capital that will, in turn, be used for growth in this retail sector by year's end. According to a company report, Gateway plans "to reduce costs by more than $400 million annually, profitably grow its core PC business and diversify its revenue stream with higher-margin products and services."