PalmOne lays off 100 staff

PalmOne has cut 100 jobs in a move to shift operations towards the smartphone market after acquiring Handspring earlier this...

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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

This was last published in January 2004

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