Gateway to Close Overseas Sales Operations to Focus on U.S.

Gateway Inc. said Monday that it will fire all 1,050 employees in Ireland and Britain as part of a plan to revive profit by focusing on U.S. sales.

Gateway, the second-largest direct seller of personal computers, last month said it would cut 5,000 jobs worldwide and halt business in Asia. The company said Monday that it will stop selling computers in southeastern Europe, the Middle East and Africa, as well as in Ireland and Britain. The San Diego-based company already has pulled out of the Spanish, German and Swedish markets.

Chief Executive Ted Waitt is trying to salvage Gateway as the PC industry braces for its first yearly sales drop since 1985. As rivals such as Dell Computer Corp. have cut PC prices to boost sales, Gateway has reported three straight quarterly losses and forecast another this period. The company hopes closing its retail stores and exiting weak markets outside the U.S. will help restore profit.

The company will fire 900 workers at its Dublin plant, which also served as European headquarters, and 150 in Britain, where it has 14 retail stores, spokeswoman Noeleen Murray said.

Gateway has said its business outside the U.S. kept it from being profitable last quarter. In overseas markets, Gateway didn’t have adequate distribution channels, and it was difficult to work with foreign partners, Waitt said in an interview two weeks ago.

Gateway shares fell 5 cents to $8.46 on the New York Stock Exchange.