This move, which will result in a workforce reduction of about 140 employees at Gateway's Lake Forest, CA, manufacturing site, is part of an overall efficiency improvement plan announced on Jan. 11. By moving North American server production to North Sioux City, we will improve the overall efficiency and throughput of that facility. While moves involving job reductions are never easy because they affect people's lives, this decision is a necessary step in today's tough economy. Gateway Business builds servers, which is a form of personal computers that are part of a network shared by multiple users.
Servers can store and manage shared information while also performing a variety of network tasks.
They are critical components for businesses and institutions that maintain an Internet presence, as well as have multiple users on a network. Gateway sells servers to business, education and governmental clients. For 2000, Gateway ranked sixth in the United States and ninth overall worldwide in server sales, according to International Data Corporation, a technology industry analytical firm. Gateway's North Sioux City facility will begin assembling servers in late March. The transfer of server assembly to Gateway's North Sioux City facility will begin in February.