Palm cutting jobs to gain ground on Apple, RIM
updated 01:55 am EST, Sat November 22, 2008
Palm cuts jobs before Nova
Palm 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.
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It's sad, but the end...
It's sad, but the end is nigh for Palm.
Market Cap: 243.96M
Total Cash: 248.31M
Total Debt: 397.00M
Net Income: -151.97 (past year)
PALM was trading at $802.50 a share in 2000. It's now at $2.24 a share. The new Nova based Palms have been pushed back to the second half of 2009...along with lay-offs, this may mean they're scrambling to hit next year's holiday season.
When Nova does come out, Palm will be trying to support their own operating system, which is not only going to be new to market, but trying to compete with app store mobile OSs like Apple has, and others will have. Of course it makes it a bit harder to establish a new mobile OS when you yourself are competing with it with TWO other mobile OSs at the same time: Centro and Windows Mobile.
It's too bad, Palm was such a great company at its PDA-peak.