Palm Inc., the troubled maker of Treo smart phones, laid off about 10 percent of its work force this week to cut expenses, according to an anonymous source familiar with the situation. The Sunnyvale-based company did issue a statement today confirming some layoffs, but did not not publicly disclosing the exact number of layoffs. The source, however, said Palm, which has a worldwide staff of 1,150, was eliminating more than 100 jobs. In its statement, Palm said the restructuring, which also included some reassignments, was part of its ongoing effort to "focus and better align resources behind core initiatives" and "to ensure that our expenses are in line with projected revenues."
Palm has struggled against stiffening competition over the past year. Some missteps, including product delays and the cancellation in September of a portable computer call Foleo, have compounded the problem. When the company reports its fiscal second-quarter results Tuesday, it will swing to a wider-than-expected loss partly because of yet another delay in a product launch. The company did not name the product but analysts widely believe it is a Treo model slated for a major wireless carrier.
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