Palm lays off 10% of workforce
Palm, Inc. (Nasdaq: PALM) shares are down after the struggling maker of Treo smart phones laid off 10% of its workers to cut expenses. The Sunnyvale, Calif.-based firm said the layoffs are part of a restructuring. The firm is eliminating more than 100 jobs out of 1,150 staffers worldwide.
Last week, Palm lowered its second-quarter earnings guidance to between a loss of $0.22 and $0.24 per week, compared with previous guidance of a loss between $0.01 and $0.03 per share. Second-quarter revenue is now expected to be between $345 million and $350 million, from a previous range of $370 million to $380 million.
The company said the layoffs, which will include reassignments, was part of an effort to “focus and better align resources behind core initiatives” and “to ensure that our expenses are in line with projected revenues.”
In morning trading, PALM shares are down 1.23%, or $0.07, at $5.64. Over the last 52 weeks, shares have ranged from $5.33 to $9.93.
