Report: Job Cuts at Palm Inc
News.com is reporting on new round of job cuts at Palm Inc. today. The article says some workers are still in the process of being notified of the cuts this afternoon. The total number of layoffs is not known at this point.
"It's a small percentage of our workforce," Palm spokesman Jim Christensen told News.com, adding that Palm still has openings in some areas. The bulk of the jobs being eliminated are in the U.S. and in Palm's development ranks, though there are some cuts across the company, he said.
Christensen said the move was "not about cost-cutting" but rather about "eliminating some of the hierarchy" at the company.
This news follows last week's announcement of Palm's plans to sell a 25% stake in the company to Elevation Partners. Along with the investment and recapitalization plan, Palm also announced major changes to its Board of directors with long time Chairman Eric Benhamou stepping down. Jon Rubinstein, former senior vice president of hardware engineering and head of the iPod division at Apple, is joining Palm as executive chairman of the board. Fred Anderson and Roger McNamee, managing directors and co-founders of Elevation, will also be joining Palm's board.
Palm is scheduled to report its Q4FY07 results June 28, 2007 at 1:30 PM PT.