Packard Bell pulls PCs from market, cuts staff
SAN JOSE, CALIF. (AP) — Packard Bell NEC Inc., once the largest U.S. maker of personal computers for consumers, is pulling most of its home PCs from stores because of millions in losses.
The computer manufacturer also said it will lay off 1,600 employees in Sacramento by the end of the year. Among those losing jobs will be 12 of the company’s 13 senior executives, including chief executive Alain Couder.
The company will stop selling its consumer PC models in stores, except for its Z1 desktop. It is looking into selling over the Internet or through other channels and will continue to sell NEC brand business systems.
The withdrawal follows IBM’s decision last month to stop selling PCs in stores.
and focus instead on doing business over the Internet.
The Packard Bell pullout closes an era of rapid U.S. decline for the company, which had fallen to No. 6 in the domestic market by last summer, according to researcher Dataquest. Packard Bell lost $650 million last year and couldn’t sustain losses, Fuchs said.
Like other PC makers, Packard Bell has been hit hard by fierce price wars and rising computer parts prices. But the company also had a mixed record with customers because of computer quality problems.
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