Computer manufacturer Gateway, whose 1,100 Irish workforce is facing job cuts of up to 200, reported a large first quarter loss of $503 million, or $1.56 per diluted share, compared to a profit in the first quarter a year ago.
The San Diego-based company said it was taking on $533 million in charges to cover job cuts, store closures and other measures taken in an effort to regain footing in the midst of a slowdown in consumer demand. This is almost the twice the amount it warned of in February.
Gateway's Chief Executive, Ted Waitt, has dramatically cut back the company's product lines and replaced most of its management, saying he was trying to get back on track by focusing on core PC lines.
Mr Waitt, the company's co-founder, said he expected the restructuring would push the company back into profitability on an operating basis by the second half of the year. But he acknowledged that the company was coming under increasing competitive pressure, particularly outside the US.
Gateway's net loss in the first quarter compared with a net profit of £120 million or 36 cents a share the same time last year. Revenues fell 15% to $2.03 billion.
