PalmOne shrinks workforce
Published: 22 Jan 2004 12:00 GMT
Handheld maker PalmOne, which recently spun off one company and absorbed another, on Wednesday announced that it is cutting its work force by about 12 percent.
About 100 employees are being made redundant as PalmOne continues to integrate fellow device maker Handspring. Shareholders of PalmOne predecessor Palm approved that merger in October, along with the spinoff of its software unit as PalmSource.
PalmOne faces a declining market for personal digital assistants (PDAs), which have been its mainstay, as buyers increasingly turn to the emerging category of smart phones, which offer both the organiser functions of PDAs and the calling capabilities of cellphones.
The company said that it is shifting more investment into smart-phone technology and that the layoffs are part of its plan to get out of the red and reach profitability in fiscal 2005. PalmOne reported a second-quarter net loss of $4.1m (£2.24m) last month.
"The Handspring acquisition continues to deliver synergies, and tough but strategic decisions coupled with operational discipline enable us to reduce overall spending," PalmOne chief executive Todd Bradley said in a statement. "We are committed to delivering growth and profitability, and these actions will move us closer to those goals."
When the layoffs are completed, the company expects to have about 740 employees.
Did you find this article useful?
59 out of 97 people found this useful
- Share this article:
