The State College Gateway Country store closed Monday due to under-performance and company-wide reorganization, a Gateway Inc. spokesman said.

The computer company recently cut 1,900 jobs -- 17 percent of its total workforce -- nationwide as part of a plan to save more than $200 million annually.

"The decisions were based on profit performance, long-term viability and future growth potential," said David Hallisey, spokesman for Gateway, Inc.

Employees of the local Gateway Country, 253 Benner Pike, were notified last Monday by e-mail that the store would be closing in one week. Some employees were allowed to stay on an extra week to help pack up the remaining merchandise.

Michael Borowy (freshman-finance), a Gateway Country salesman for 10 months, said he was officially told in last Monday's e-mail that the company was hoping to cut costs by eliminating non-profitable and under-performing stores.

"Traffic was slow here and our location wasn't very good," Borowy said. "It just wasn't worth it to have this location."

Eric Blickley (senior-finance), a part-time solutions advisor at Gateway Country, said despite last week's "Inventory Reduction Sale," traffic and sales remained about the same -- slow. "After Christmas, it's just a soft time in the industry," Blickley said.

Gateway Inc. provided employees with a severance package and out-placement services, Hallisey said. The company is also encouraging former employees to stay within the company by applying for open positions at other locations, he added.

Blickley said the company has been very resourceful in helping employees find new positions.

"They paid for a counselor to call us and help us find work in another part of the company and the district managers have lists of jobs in the area," Blickley said. "They are really promoting staying within the company."

Hillary Pasch (junior-information sciences and technology), a full-time senior repair technician at Gateway Country, said despite the help from the company, she has not found a new position.

"I don't think anyone has found another position yet. There just aren't that many jobs out there now," she said.

Some former employees do not have hard feelings toward the company. "I was saddened, but I understand why they did it," Blickley said. "It was a phenomenal experience. I'm planning on staying with the company after I graduate in May."

Though the answering machine at the store is directing customers to Gateway's 800 number and Harrisburg location, Hallisey said he expects most customers to turn to the Web site for purchasing and technical support.

Managers at Gateway Country were unavailable for comment yesterday.