Palm Lays Off 10% of Workforce

Missteps, growing competition plague smart phone maker
By Jane Yager,  Newser Staff
Posted Dec 14, 2007 8:12 AM CST
A Palm Treo 700 phone on display at a Verizon store in Salinas, Calif., Monday, June 4, 2007. Smartphone maker Palm Inc. will sell a 25 percent stake to private equity firm Elevation Partners for $325...   (Associated Press)
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(Newser) – Palm, the struggling maker of the Treo smart phone, laid off more than 100 of its 1,150 worldwide employees this week as part of an expense-cutting restructuring. The company, facing stiffening competition, has compounded its recent woes with product launch delays and the September cancellation of the Foleo portable computer, AP reports.

Palm's fiscal second-quarter results, to be posted Tuesday, are expected to be worse than anticipated, due in part to another product launch delay. Palm now expects a second-quarter loss of 22 cents to 24 cents per share, compared to an earlier projection of a 1- to 3-cent-per-share loss.