Cnet writes 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.
In addition to direct sales, Gateway has relied on selling PCs and consumer electronics through a costly network of retail stores. eMachines, by comparison, was successful in using relatively few employees to sell computers through mass retailers such as Best Buy and Costco. (full story)
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