4,600 shown the door at Gateway

Gateway is slashing 4,600 jobs, or 25 per cent of its global workforce, and pulling out of a number of key markets as it attempts to stave off the effects of plummeting sales.

Around 1,000 jobs are expected to go from its European operations.

The troubled PC maker has also confirmed it will decide in the next 30 days whether it will turn its back on all its European markets, and predicted it would take a $200m third quarter charge relating to European closures and restructuring.

Gateway also announced it will immediately shut down its operations in Australia, Japan, Malaysia, News Zealand and Singapore.

The company also said it was taking a one-off charge of $475m in restructuring costs, but claimed the restructuring will help it save $300m a year.

US operations will also be hit by the restructuring with 15 per cent of its workforce to go after the company announced it will shut call centres in four states as well as one of its manufacturing plants.

Gateway shares were sent tumbling last week when credit rating agency Standard & Poor downgraded the computer manufacturer stock to junk status.

Standard & Poor also issued a negative ratings outlook for the company and claimed Gateway may be 'challenged' to return to profitability next year.

The PC maker suffered Q2 losses of $20.8m, compared to $118m in the same quarter last year, as global sales dwindled and it got left for dead in the fierce price war between Dell and Compaq.

However, with the restructuring, Gateway CEO Ted Waitt said the company was doing all the right things to create a new company with a "healthy, profitable future".

He added that the plans would transform Gateway into a "lean, nimble organisation", which was focused on its customer base.

Waitt predicted the company would make a slight loss in the third quarter, but make a return to profitability in the Q4.