Biz (2599)

Palm is to cut jobs

Losing ground to RIM and Apple

23 November 2008 16:16 GMT / By Katie Scott

Palm has started making job cuts but has yet to announce how many of its 1050 workers are going to face redundancy.

The announcement comes just a couple of weeks after Palm's shares dropped a whooping 21% following doubts voiced by an analyst.

Morgan Keegan analyst Tavis McCourt downgraded the stock and said in a note to clients that the company may need to raise some serious capital to complete its turnaround plan.

Now Palm has admitted it needs to make job cuts, as Reuters says it continues to lose market share to rivals Apple and Research in Motion (RIM).

Spokeswoman Lynn Fox would not be drawn on how many jobs are going to go but said: "The goal is to consolidate resources and focus our efforts more effectively".

Full tags

Biz, Palm, Phones