Palm cutting jobs to gain ground on Apple, RIM

Logo PalmPalm is responding to its recent losses by trimming its workforce of 1050 employees, in an effort to remain competitive against the iPhone 3G and the various BlackBerry models. Reuters reports that the move comes as Palm focuses on its Linux-based "Nova" operating system, as well as a device on which the platform will run. Palm spokeswoman Lynn Fox declined to say how many jobs will be cut, but said the first round began this week.

In order to stay ahead of Apple and RIM, Palm has hired former Apple execs John Rubenstein and Mike Bell, but still has much to overcome. A recent study found that only 5 percent of companies would purchase a Palm-based smartphone over the quarter, down from 10 percent in the year ago quarter, while 78 percent sought BlackBerries, 22 percent wanting iPhones.

Palm is also facing a likely cash shortage, according to filings found by a Morgan Keegan analyst. The company is reportedly examining several practices to avoid further financial troubles.

Source: electronista

Tags: Linux, Palm

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