MANHASSET, N.Y. Palm Inc. (Milpitas, Calif.) slashed its overall workforce by 19 percent, or about 250 employees, largely in the United States during its fiscal third quarter.
The job reductions came at the Palm Solutions Group, which develops Palm handheld devices, and PalmSource, which develops and licenses the Palm OS.
The layoffs, which bring the total headcount to 1,300, were predicted in a Dec. 18th conference call with analysts, during which company executives said there would be additional cost cutting.
Palm Inc. also took job cuts in 2002 that amounted to "more than 100" positions, a spokeswoman said.
During the December call, Palm Inc. executives reported revenues of $265 million for the second quarter of fiscal year 2003, ended Nov. 29, 2002, down 9 percent from the $291 million reported during a comparable period the year before, and up 54 percent from the first quarter of fiscal 2003.
The company has not provided a mid-quarter update on sales since that time, but market researchers reported that Palm Inc.'s products held all top five selling positions during the 2002 holiday sales period.
Those top-sellers included the Zire, a $99 consumer device that was introduced in October 2002, along with the Tungsten W, a handheld with a GSM/GPRS radio for email and web browsing, and the Tungsten T with integrated Bluetooth.
Palm Inc. plans to release third quarter fiscal 2003 results on March 20th when it will give a picture of how its new products have taken hold.