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Gateway cuts jobs across Asia-Pacific region

The PC maker lays off more than one-third of its work force in Singapore, Hong Kong and Malaysia as part of a restructuring and cost-cutting plan.

PC maker Gateway has laid off more than one-third of its work force across the Asia-Pacific region as part of a restructuring and cost-cutting plan.

In the past six months, about 240 to 250 Gateway employees in Gateway Asia Pacific--which includes Singapore, Hong Kong and Malaysia--have received pink slips. These include all 70 workers in the company's Malaysian sales office. The rest of the cuts come from Singapore and Hong Kong, a Gateway Asia spokeswoman told CNET

In January, Gateway Asia had about 670 employees, including more than 400 at its factory in Malacca, Malaysia.

The spokeswoman declined to provide specifics but said the Malacca plant was unaffected by the downsizing. No further details were provided on Hong Kong employees; the office was closed June 30.

"Gateway is moving toward a new business model...We will focus on brand management and product management, while our partners will handle sales and marketing, as well as customer service," the spokeswoman said.

The cuts in the Asia-Pacific region are part of the company's attempts to regain profitability.

In Kuala Lumpur, Malaysia, Gateway has closed two Country Stores and will outsource call center services and predelivery support to Datacom, while Unisys will handle both repair and onsite technical support. Based in Malaysia, both Datacom and Unisys will work with Gateway customers in Singapore, Malaysia and Hong Kong.

Gateway also plans to close two of four Country stores in Hong Kong. "The remaining stores in Hong Kong will be managed by a business partner," the spokeswoman said, declining to disclose the partner's identity.

CNET Singapore's Fran Foo and Nawaz Marican reported from Singapore.