Struggling computer maker Gateway has announced it is to cut a further 2,250 jobs in the US as it attempts to cut costs.

The company said it would be shutting four of its offices, and closing 19 of its retail stores.

The job cuts are in addition to the 4,600 jobs Gateway said it was shedding last August - which accounted for a quarter of its global workforce.

Earlier on Thursday Gateway announced it had recorded an operating profit for the fourth quarter.

Fierce competition

Gateway is the fourth largest personal computer (PC) maker in the US.

But it has suffered from the recent slump in PC sales, and fierce competition from its larger rivals.

Dell has managed to expand its market share through an aggressive price cutting strategy, while Compaq and Hewlett Packard are attempting to merge.

Last year Gateway took drastic steps to cut costs and refocus its efforts.

It said it was shedding a quarter of its workforce, and shut its European operations to concentrate on the US market.

But the company says the latest lay-offs should be the last round of job cuts for a while.

"We believe that there are no other restructuring activities on the horizon for 2002," said chief financial officer Joe Burke.

Profit from lower sales

Despite the news of further job cuts, Gateway announced it had climbed out of the red during the fourth quarter.

The PC maker said it earned $5.1m during the fourth quarter before one-off items - slightly better than expected - against a loss of $128m in the same period the previous year.

"We said we'd return to profitability in the fourth quarter and we did," said chairman and chief executive Ted Waitt.

The profit came despite a 17% drop in domestic PC sales, and a 53% plunge in revenues to $1.14bn.