By Kate Hanaghan, 25 January 2002 07:20
NEWS Gateway is slashing 2,225 jobs and warning of impending losses, despite turning in a profit in its latest quarter. Fourth quarter results show a profit of $9.4m on revenues of $1.1bn - a turnaround from a loss of $128m on revenues of $2.4bn in the comparable quarter in 2000. But an aggressive pricing policy put in place in an attempt to claw back market share will take its toll on the company over the next few quarters, resulting in a return to its loss-making status. Further cost-cutting measures include the closure of 19 of its 296 retail outlets. The company last year suffered a loss in US market share and controversially shut down its international sales operations - an area pin-pointed by some analyst houses as having the best potential for long term growth. Yesterday Gateway's share price closed down by 3.6 per cent but in after hours trading gained 7.7 per cent.
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