Palm cutting jobs to remain competitive with market rivals
by Stevie Smith - Nov 24 2008, 16:30
Palm forced into job cuts to keep up with Apple and RIM. Image: Palm.
The festive season may be just around the corner, but it would appear the fractured appeal of reduced end-of-year revenue amid the continuing economic downturn is impacting negatively with struggling gadget and technology heavyweights. More pointedly, smartphone specialist Palm Inc. has this week announced it is to haemorrhage an undisclosed number of its workforce into the winter snow as it attempts to maintain market momentum alongside leading players Apple Inc. and Research In Motion Ltd (RIM). According to Palm spokesperson Lynn Fox, the unfortunate staff cull will begin during the course of the next few days, adding that the company's goal is to “consolidate resources and focus [its] efforts more effectively.” California-based Palm Inc. employs some 1,050 workers and is perhaps best known for its Centro and Treo smartphone models, which have been fighting something of a losing battle against RIM's market leading BlackBerry line and Apple's trend setting iPhone handset. Despite the looming staff cutbacks, Fox was keen to outline that the company's new mobile operating system and host handset remain on track for official respective releases before the end of 2008 and during the first half of 2009, reports the Reuters news agency. While Palm's lay-offs indicate market unrest, Ontario-based smartphone maker Research In Motion is presently revelling in the high-profile launch of its new touch-enabled BlackBerry Storm, which The Tech Herald's Steve Ragan was thoroughly impressed with in our latest handset review. ChangeWave sales projections for the smartphone category suggest that some 78 percent of business customers intend to invest in the BlackBerry brand during the coming quarter, while 22 percent are being tempted by the iPhone, and a lowly 5 percent will be looking toward an option from Palm's portfolio.
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