Palm Cuts 10% Of Its Workforce

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booo.jpgIt is being widely reported now that Palm, In., creator of the Treo, has laid off about 10% of its work force this week in an effort to cut expenses. The company issued a statement yesterday that said layoffs were being made as part of a restructuring plan according to The Associated Press.

The source for The AP said that Palm would be reducing their global staff of 1,150 by over 100 jobs. The company has yet to disclose the exact number of layoffs. Palm has been struggling this year with increasing competition from companies such as Apple and others creating flashy smart phones that are taking over the market share. The statement read that this restructuring plan is to “focus and better align resources behind core initiatives,” and “to ensure our expenses are in line with projected revenues.”

Delayed product launches are also being blamed for losses from the fiscal second-quarter. The firm said last week that it expects to post a second-quarter loss of 22-24 cents per share against its estimated loss of 1-3 cents per share. Revenue is expected to be between $345 million and $350 million, a decrease from Palm’s expectation of $370 million to $380 million. Share of Palm have fallen over 70% since October.

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