Palm announces further job cuts

Palm has announced a restructure of its worldwide operations

The global economic crisis has claimed another victim, following the news that Palm is cutting its worldwide staff by unspecified number.

"As a result of significant challenges facing our company and industry, Palm is restructuring its worldwide operations to better position the company for achieving profitability and long-term growth," said a spokesman.

Palm cited the global economic downturn and the resulting reduced demand for consumer goods as primary reasons for the move. The company also mentioned its maturing Centro line, and the length of time it is taking to ramp its new Windows Mobile products as contributing factors.

"The restructuring will result in company reductions in the US and internationally, and our goal is to consolidate resources behind fewer programmes to focus our efforts more effectively," the spokesman added.

Palm currently has around 1,050 employees, having laid off 130 workers at the end of the third quarter, on top of 120 at the end of the first quarter this year.

The company has reported five consecutive loss-making quarters, but stressed that the hard times and job cuts would not affect the launch of a new mobile operating system early next year.

Recent figures from market research firm NPD show that companies like Palm are losing market share to Apple's iPhone 3G.