Gateway to Cut 140 Jobs at Lake Forest Plant

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Gateway

(GTW)

said 140 workers at the company's Lake Forest, Calif., facility will lose their jobs as the result of the PC maker's move of North American server production to North Sioux City, S.D.

The move is part of what Gateway has deemed an "overall efficiency plan" for its manufacturing services. The North Sioux City facility will begin to assemble servers in March. The transfer from Lake Forest to North Sioux City begins next month.

Earlier this month, Gateway produced a wretched earnings report, badly missing its already lowered fourth-quarter profit estimate. The company also cut its projections for 2001 and said it would reduce its worldwide employment ranks in the first quarter by more than 10%, while recording a $50 million pretax charge. According to data from

Market Guide

, Gateway has about 21,000 employees.

In after-hours trading on

Island

, Gateway sold for $22.50, up slightly from the

New York Stock Exchange

4 p.m. close of $22.15.