Gateway closes stores, lays off staff

Gateway, still one of the larger PC manufacturers, continues to struggle, and "has begun laying off 17 percent of its 11,200-person staff and closing 76 of its retail stores" in the US, reports CNet. Gateway started as a direct supplier and diversified into retailing when Dell turned up the heat. Gateway's annual revenues have slumped from $9.6 billion in 2000 to only $4.2 billion in 2002. Dell's annual sales grew from $25.3 billion to $31.2 billion at the same time, and most recently hit $35.4 billion. In the late 90s, the two firms had the same business model, sold similar products and were about the same size.