November 21, 2008 12:39 PM PST

Palm orders layoffs as Apple and RIM take toll

by Tom Krazit
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Faced with strong competition from Apple and Research In Motion, as well as economic headwinds, Palm has decided to lay off some workers.

Valleywag reported that the layoffs could involve as many as 10 percent of the company's 1,050 employees. A Palm representative confirmed that layoffs were taking place but did not comment on exactly how many people were affected.

"There have been some layoffs as a result of challenges facing our company and the industry, and we're restructuring our worldwide operations to better position ourselves for profitability and long-term growth," said Lynn Fox, a Palm spokeswoman. She declined to comment on exactly where the cuts would come, but she said Palm has decided to "focus our efforts more effectively."

The layoffs will have no bearing on Palm's plans to release a new operating system next year, Fox said. Palm has been working on a Linux-based mobile operating system with which the company desperately needs to replace the aging Palm OS. The company expects to finalize that operating system this year, and release products featuring the software in the first half of next year.

It has been a rough couple of years for Palm, which has been losing money consistently for quite some time, as Apple and RIM have come to dominate the U.S. smartphone market. The mobile-computing pioneer has managed to stay relevant with the public by releasing the Palm Centro, but it doesn't appear to be making very much money on the sale of each $99 Centro.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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by Mr. Dee November 21, 2008 1:25 PM PST
Interesting, didn't Lynn Fox work for Apple PR? What happened, did SJ give her the boot? Anyway, why didn't PALM just join the Android alliance and make the revitalization easy on themselves and focus on form factors and unique applications and services? I think it would help them better compete.
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by November 21, 2008 2:55 PM PST
Palm desperately needs to leak something about their new OS and/or device. I'm a die hard fan of Palm but I haven't checked the Treo sites for half a year because there's no news and when people stop talking about your company you become irrelevant. I'd love to see what Palm has up their sleeves but it's been so long and my hopes are low that I'd take a G1 once it's available on Sprint and leave my Treo for the first time since they made the first model.

NOT GOOD PALM!

SHOW US SOMETHING BEFORE IT'S TOO LATE!!
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by Scott 56 November 21, 2008 3:02 PM PST
Palm is toast; a relic of the old days; irrelevant.

Due to their own inability to upgrade their software on a regular basis to make it fresh and exciting they let others come in and do that for them.

3 relevant SmartPhone interfaces/os's are more than enough (apple, rim, google). They should just take whatever funds they have left and send them to the shareholders before they waste it.
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by AndrewRich November 21, 2008 3:03 PM PST
Palm is still around?
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by November 21, 2008 11:24 PM PST
As much as I like my Treo 755p -- despite all of its quirks, stubborn and slow keypad, plus constant rebooting or freezes when sending email -- I'm very much looking forward to the iPhone when my cellular carrier (Telus Mobility) makes their transition from CDMA to HSPA in early 2010.

The iPhone has quirks as well but I figure that Apple will have sorted them out over the next year or so while I play with the iPod Touch in the interim.
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by forever4now November 22, 2008 7:19 AM PST
Palm should stop wasting time and resources on their own Linux implementation and adopt Android. Then they can focus their efforts on tailoring it for a "Palm" experience...if they don't like the default. Palm does make some nice looking devices, and Android would make them immediately more marketable.
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by SteveW928 November 22, 2008 8:18 PM PST
I bet Ed wished he could retract this article...
http://www.engadget.com/2006/11/21/palms-ed-colligan-laughs-off-iphone/
I guess they should have been working on their product line rather than shooting their mouth off.
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by JMaloney13 November 24, 2008 10:37 AM PST
My wife and I have bought and used 4 Palm PDA's over the years. They were fairly productive units with a few problems here and there. Overall, a decent experience. Then came my experience in "Vista He!!". Palm was the lamest, most ineffective company and could not get my Palm to work with Vista. That was the end of our rope and the end of us buying Palm products to use in our daily lives! My wife now has a Crackberry and does not miss the Palm. I am looking at IPhones and other solutions.
The other poster is correct. Palm has become irrelevant due to their own sloth and arrogance. I just need something that synchs my Mac and PC's and works every day and with every OS. Yes, Vista is crap. However, it's up to Palm and Microsoft to work those issues out way before they get to me, the consumer! I say let Palm die a slow death. Innovation rules in the valley and it's been a long, long time since they did any of that!

Jeff
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by remarquee December 3, 2008 11:21 AM PST
The demise of Palm has been coming for a very long time. Failure to be
innovative is a sure way to die in the world of high tech.

The only thing that has kept it alive is a strong contingent of loyal users.

Palm's management sucks and has done so through the last two CEO's.

Gordon
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