Gateway announces US plant closure, job losses

Personal computer manufacturer Gateway has announced it intends to cut its costs by an additional $115m (€106m) to $130m (€119m) a year by combining manufacturing operations and relying more on third-party outsourcers for several operations .

Gateway said it would close its Hampton, Virginia complex at the end of this month. It also will eliminate some jobs at its North Sioux City, and Sioux Falls, South Dakota locations.

The company is expected to cut a total of 1,100 jobs.

It also will incur reorganisational expenses of $120m (€110m) to $160m (€147m) over the next three quarters.