Gateway, the direct-sell PC maker is set to pull out of the European market in a move many believe could lead to its retrenchment from all non-US markets.

Although the company denies that a final decision to close has been taken, it revealed yesterday that it has begun the consultative process required by European law.

At risk is the Gateway sales and marketing unit in Uxbridge, West London, along with its manufacturing facility in Dublin. In all, over one thousand jobs are at stake.

Financially ailing Gateway – the globe’s second largest direct vendor of PCs and notebook computers after Dell – has seen its US market share eroded year-on-year from 8.3% to 7.4% in the second quarter. However, Gateway claims it would have stayed in the black but for losses at its overseas operations – which last year generated 14% of total revenues.

Gateway says it will also review its operations in Asia, Latin America and Africa.

News source: Financial Times