PalmOne has cut 100 jobs in a move to shift operations
towards the smartphone market after acquiring Handspring earlier
this year.
Two engineering teams for wireless products and handheld
products bore the brunt of the job losses after they were
consolidated into a single group, said company spokeswoman Marlene
Somsak. About 740 workers will remain at PalmOne.
PalmOne leads the market for PDAs with its Tungsten and Zire
products, but handhelds that offer voice capability as well as
storage for contacts and calendar information are expected to grow
much faster than unconnected PDAs.
The company acquired Handspring last year for its Treo 600
product. That smartphone has been well received by analysts,
reviewers and users, and gives PalmOne a foothold in the smartphone
market.
Last June, PalmOne said that 125 employees would lose their jobs
in the combined company. About 75 Handspring employees left that
company between the acquisition announcement in June and the
October shareholder vote to confirm the deal.
Tom Krazit writes for IDG News Service