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Acer chief: No Gateway layoffs

10:10 AM

By Dave Dreeszen Journal business editor | Posted: Tuesday, October 30, 2007
NORTH SIOUX CITY -- The head of Acer Inc. promises no layoffs of Gateway workers as a result of the Taiwan-based firm's acquistion of the U.S. PC maker.

"People in Gateway started to think how many employees will be laid off,'' Acer Chairman and CEO J.T. Wang told BusinessWeek. "That's not a priority. We want to keep the business. The synergies calculated don't include laying off people.''

Wang made his comments in an interview with BusinessWeek's Hong Kong bureau chief Bruce Einhorn in Taipei, prior to the release of Acer's earnings report Monday. Though the CEO did not discuss specific Gateway U.S. sites, his remarks come as encouraging news for the remaining Gateway employees in North Sioux City, as well as local leaders.

Earlier this month, Acer finalized its $710 million deal for Gateway, which will operate under its own name as a wholly-owned Acer subsidiary. Gateway's former headquarters and manufacturing plant in North Sioux City is today home to about 450 employees, who work in the company's direct consumer sales division, a tech support center, and some companywide support functions, such as accounting, human resourcs and marketing.

Another 450 former Gateway workers at the cow-spotted complex are now employed by Idaho-based MPC Corp., which earlier this month closed on a $90 million deal for Gateway's professional division.

For a more complete story, read the print edition of the Journal and online Wednesday.

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Story Comments

Me3 wrote on Apr 9, 2008 6:02 PM:

" Layoff continues into January/Febrary/March and beyond. In fact, Gateway's IT is also completely eliminated. Only few is left to support Gateway's website. The rest are awaiting for their pink slips. It's not about keeping who. It's about cutting cost. Acer only wants Gateway brand and market shares. It's really sad to see a once proud and legendary home garage started out business reduced to just a front for a Taiwan corporation. Well, I guess that's just business. thanks ED "

Tim H wrote on Nov 1, 2007 1:44 PM:

" Come on people... it's all about synergies!! :) "

Customer Support? wrote on Nov 1, 2007 12:02 AM:

" Apparently, third party companies like Alorica have taken over Gateway's(Acer's) customer support. Are there really any "Gateway/ Acer" jobs in this area? Just wondering. Acer has it's own support center in Texas, Gateway has farmed this out to Alorica, where does this leave Alorica or any Gateway/ Acer customer support employees? "

In the know wrote on Oct 31, 2007 12:27 PM:

" We know this because my boss is one of them along with several others. "

WARN? wrote on Oct 31, 2007 10:27 AM:

" What is the WARN act? I don't work there so, I don't know what this is... "

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