Palm has laid off about 50 people at its hardware unit in response to declining demand for handheld computers, a company spokeswoman said.
The cuts btought the total workforce reduction at the Palm Solutions Group, the hardware section of Palm, to just over 100 jobs in the third quarter of the company's fiscal year 2003, which ends Friday, the spokesperson said.
Combined with the layoffs announced earlier at operating system subsidiary, PalmSource, the cutbacks over the past three months amounted to about 19 per cent of the total combined workforce, the spokesperson said.
Palm now employed about 900 people, she said.
That compared with 1124 on November 29, 2002, the last day of the second quarter of Palm's fiscal year 2003, according to Palm's Web site.
PalmSource, which is being spun off from Palm, earlier this month said it had reduced its headcount by 18 per cent.
Palm has been restructuring heavily as it faces a depressed market. The worldwide PDA (personal digital assistant) market saw its first-ever decline in 2002 with shipments down more than 9 per cent from 2001, research firm Dataquest, an arm of Gartner, said.
For the three months ended November 29, 2002, Palm reported a net profit of $US3.52 million on revenue of $US264.9 million, according to the company's Web site.
Palm is scheduled to release its third fiscal quarter earnings on March 20.