Business News.(A)(Business News)

Gateway refocusing on PC sales,

despite earlier push to diversify

Gateway CEO and co-founder Ted Waitt said selling PCs will be its top priority - a step back from its strategy of driving profits by selling PC peripherals and services - responding to criticism that the firm had lost its focus. Waitt also said the No. 2 direct U.S. computer seller will control costs and treat customers better. Waitt retook the helm in January from Jeff Weitzen, w

ho championed Gateway's strategy of boosting profit margins by moving beyond the slow-growth PC business.

Gateway warns, restates profit: The PC maker said it will break even in the first half of 2001 before charges, far below Wall Street views. Unit sales willfall in the first quarter from a year ago. Gateway will take charges of $150 million to $275 million in the first quarter, up from $50 million. Also, it restated 2000 profit to 96 cents from $1.28 to reflect new accounting practices.

WorldCom lays off 6,000 workers

The long-distance firm gave out pink slips to 6%-7% of its work force as part of its restructuring, sources said. Rumors had WorldCom firing up to 11,550 workers. WorldCom is working to separate its troubled long-distance phone operations from its more lucrative data and Internet businesses. The layoffs are the first in WorldCom's history.