Major jobcuts are expected at
Palm after it said it
would be cutting operating costs by 20% in response to poor
sales.
The smartphone maker said sales were well down in the
second quarter ended 28 November.
The firm has not yet posted official results but warned sales
would be no more than £130m, which would be a drop on the previous
three months and a fall on the amount for the same three months a
year ago.
"The difficult economic environment has greatly intensified the
negative impact on product sales", said Palm.
Ed Colligan, Palm CEO, said, "In order to ensure Palm's
long-term success during these uncertain times, we are taking
several steps to significantly reduce our cost structure. These
measures will help us navigate this difficult period while
launching our next-generation products as planned."
The company is implementing several cost-savings initiatives,
including reducing its US work force, consolidating its European
operations, and shifting responsibility for Asia Pacific sales,
marketing and administrative support to its US offices.
The firm expects the measures to reduce operating expenses by
more than £13m. It has not said how many jobs will go as a
result.