Gateway the second-largest direct seller of personal computers, which employs more than 1,700 people in the Republic, yesterday reported fourth-quarter results that badly missed already reduced expectations and said sales growth for this year would fall short of earlier forecasts.

The company said it would cut its workforce by 10 per cent, reduce overhead costs and compete more aggressively at the low end of the market for personal computers.

Job cuts would come "across the board" said Gateway chief financial officer Mr John Todd.

Gateway shares fell to $20 in after hours trade, down from a close of $22.90 on the New York Stock Exchange.