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Palm plans further cuts

Palm plans further cuts

Palm is hoping that by cutting jobs and concentrating on its high-end Treo smartphone range, it can return to profitability.

The bad financial news continues to hit the tech sector with PDA old timer Palm looking to slash costs by twenty percent with some major restructuring.

According to BetaNews, the company is hoping to recoup losses that saw its second quarter revenue drop to $195 million, significantly lower than the company has been expecting.

Palm's chief executive officer Ed Colligan has said that his company is seeing “unprecedented dynamics in the global markets as economic uncertainty hampers demand for consumer products.” He believes that “in order to ensure Palm's long-term success during these uncertain times, [we must take] 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.

Job losses are expected to form the bulk of the cost-cutting measures, with much of the responsibility for sales in the Asia-Pacific region shifting back to the United States. The company is also looking to concentrate more on its high-end Treo range of products, on which it makes a significantly higher margin.

It's been a tough few years for the company: with its home-grown operating system, PalmOS, declining in popularity when faced with stiff competition from Windows Mobile and its frequently under-powered devices being bested by multiple manufacturers, many saw the decline of Palm as inevitable. When the company bet its future on the Foleo – a proto-netbook that relied on a compatible mobile handset for all its connectivity and storage – many thought the writing was on the wall.

With the company having all but abandoned its PalmOS roots – modern Palm devices are designed around rival Microsoft's Windows Mobile – this “difficult period” could be the straw that broke the camel's back for Palm.

Do you have fond memories of 'beaming' notes to your friends with your PalmPilot, or has the company always played second fiddle to market rivals? Share your thoughts over in the forums.

5 Comments

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Brooxy 3rd December 2008, 14:45 Quote
The company I work for almost exclusively use HTC phones - no sign of a Palm over here.

However I've got the Treo 500 for personal use, and for a low end smartphone, I have to admit it does the trick pretty well. Only problem I have is the battery life, which isn't great, but it does the trick.

It would be sad to see them go if it comes to that - I remember as a kid playing with the Psion 5 and working out how it works - old times.
p3n 3rd December 2008, 15:02 Quote
There is no future for these companies unless they embrace a proper operating system (Android/OSX Mob)..
Nictron 3rd December 2008, 15:29 Quote
I use a Treo 650, I was able to use Active Sync before the Windows Mobile devices was able to. It would be a shame if this icon disappeared from the options list.

I personally think Palm must change their image because it is oddly unknown by the younger generation, and that is bad news because that will be your future target market.
StooJ 4th December 2008, 00:44 Quote
I had several Treos over the years and they weren't too bad. They were never a "killer" gadget, but I always preferred PalmOS to Windows Mobile, and I abandoned them once Palm started putting Windows on (almost) all their devices.

Access looked promising, but once Palm started re-developing a competing OS I figured the game was up.
DXR_13KE 4th December 2008, 01:31 Quote
they are still alive?
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