Palm Laying Off Employees, Focusing on Fewer Projects

Palm, Inc. is laying an undisclosed number of employees off, both in the U.S. and in other countries, as it tries to reinvent its products in tough economic times.

A Palm spokesperson issued this statement:

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. The global economic downturn continues to dampen demand for consumer goods around the world, and the impact on the economic environment is worsened by our maturing Centro line and the length of time it is taking to ramp our new Windows Mobile products. The restructuring will result in company reductions in the U.S. and internationally, and our goal is to consolidate resources behind fewer programs to focus our efforts more effectively.

Struggling to Reinvent Its Products

Like many companies, Palm is being buffeted by the current economic crisis, but it's in an especially tough spot, as it is in the middle of a significant change. It's in the process of developing products based on a new Linux-based operating system to replace the aging Palm OS, and no one is sure how this is going to turn out.

The company's share price has been on a roller-coaster ride this week. It started Monday about $2.50, but by Thursday morning was down below $1.70. The share price climbed steadily on Friday to end the week at $2.24. For comparison, it's high point in the last year was $8.94.

The company's consumer flagship model, the Palm Centro, has been a solid performer, but it came out more than a year ago. It won't be replaced until the company can release devices based on its new OS, which is scheduled to happen by the middle of next year.

As a result, Palm is depending on its Windows Mobile-based Treo models, which, as the company's statement indicates. are running into delays.

Related Articles:

• Palm Treo Pro Reportedly Heading to Sprint in January
• Palm Promises Next-Generation Operating System by Mid-2009
• Palm Still Losing Money as It Works to Reinvent Itself
• How Can Smaller Mobile Companies Respond to the Credit Crunch?

Via Palm Infocenter