Palm Lays Off Employees in Restructuring Process

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Date: Friday, June 15th, 2007, 13:05
Category: News

palmlogo.jpg
Late Thursday, Palm announced that it had instituted layoffs that would affect a “small percentage” of its 1,200 employees. The firm stated that most of these employees would be downsized from Palm’s development group and affect the employee base within the United States.
According to Macworld News, Palm has faced a steady decline in its handheld device markets and has taken on a restructuring effort in which equity investors Elevation Partners took a 25% stake in Palm, investing US$325 million in the company.
Once an unquestioned leader in the handheld market, Palm has seen its market share decline in the face of growing competition, even in the smartphone market, where its Treo handheld device has historically done well.
A spokesperson for the company said that despite reorganization and layoffs, Palm is still hiring in other areas.
“We’re flattening our organizational hierarchy and doing some realignment,” he said.
An exact number of possible future layoffs was not immediately available.


palmlogo.jpg
Late Thursday, Palm announced that it had instituted layoffs that would affect a “small percentage” of its 1,200 employees. The firm stated that most of these employees would be downsized from Palm’s development group and affect the employee base within the United States.
According to Macworld News, Palm has faced a steady decline in its handheld device markets and has taken on a restructuring effort in which equity investors Elevation Partners took a 25% stake in Palm, investing US$325 million in the company.
Once an unquestioned leader in the handheld market, Palm has seen its market share decline in the face of growing competition, even in the smartphone market, where its Treo handheld device has historically done well.
A spokesperson for the company said that despite reorganization and layoffs, Palm is still hiring in other areas.
“We’re flattening our organizational hierarchy and doing some realignment,” he said.
An exact number of possible future layoffs was not immediately available.

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