Gateway to Shift Production of Servers to South Dakota; 140 Layoffs Planned

Gateway Inc. said it will cut 140 production jobs in California as part of a broader restructuring announced earlier this month. The San Diego-based company said it will shift production of its server computers to its main North American plant in North Sioux City, S.D., resulting in about 140 layoffs at a plant in Orange County. Gateway will maintain sales, marketing and product development operations in Lake Forest, a spokesman said. The decision to shift production from California is not related to the state’s electricity crisis, which has caused outages for some businesses in the last weeks, he said. Gateway shares rose 70 cents to close at $22.15 on the New York Stock Exchange.