Palm Layoffs Reported Amid Restructuring

Palm has reportedly laid off 10 percent of its work force in an attempt to cut expenses.

The company issues a statement confirming the layoffs were part of a restructuring. Palm has a worldwide staff of 1,150. Palm did not disclose actual numbers, but the Associated Press is reporting approximately 100 jobs were eliminated. The restructuring is part of their ongoing effort to "focus and better align resources behind core initiatives" and "to ensure that our expenses are in line with projected revenues."

The company warned last week that investors should expect a second-quarter loss of 22 cents to 24 cents per share, compared to the October projection of 1 cent to 3 cents per share. Revenue guideance was also down to $345-$350 million, roughly $20-$30 million below previous estimates. Key contributors were an unforeseen increase in warranty repairs, higher-than expected shipments of the Palm Centro and their inability to get certification for a key product. Despite speculation of a new model, it’s believed the Treo 755p for Verizon Wireless had been delayed.

Source: AP