Palm confirms layoffs

23 Nov 2008 14:34

The company has not said how many jobs are being cut, as it works to get a next-generation OS ready to compete with Apple and RIM in 2009

Faced with strong competition from Apple and RIM, as well as global economic turnmoil, Palm has decided to lay off some workers.

Valleywag reported that the layoffs could involve up to 10 percent of the company's 1,050 employees. A Palm representative confirmed that layoffs were taking place but did not comment on exactly how many people were affected.

"There have been some layoffs as a result of challenges facing our company and the industry, and we're restructuring our worldwide operations to better position ourselves for profitability and long-term growth," said Lynn Fox, a Palm spokeswoman. Fox declined to comment on exactly where the cuts would come, but said Palm has decided to "focus our efforts more effectively".

The layoffs will have no bearing on Palm's plans to release a new operating system next year, Fox said. Palm has been working on a Linux-based mobile operating system to replace the aging Palm OS. The company expects to finalise that operating system this year, and release products featuring the software in the first half of next year.

Recent years have been difficult for Palm, which has been losing money consistently for quite some time, as Apple and RIM have come to dominate the US smartphone market. The mobile-computing pioneer's Palm Centro has proved popular, but the company doesn't appear to be making very much money on sales of the $99 (£67) device.

Story URL: http://news.zdnet.co.uk/hardware/0,1000000091,39561196,00.htm