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Palm Lays Off 16% Of Workforce

11/29/2001 08:54:00 AM Eastern

Santa Clara, Calif. -Palm reported today that it would reduce its workforce by about 16 percent, or 250 employees.

This is the second time this year Palm has made a cut, with 250 workers let go last March.

At the same time, Palm updated its revenue guidance for its fiscal second quarter ending Nov. 30. Revenue should be in the range of between $250 million and $280 million, which is toward the upper end of its prior guidance. In September, Palm lowered its revenue expectations for the current quarter, citing ongoing economic uncertainty and the events of Sept. 11.

In October, Palm reported a loss of $38.7 million for its fiscal first quarter. Sales in the first quarter were $214 million, compared to $401 million in the same quarter in 2000.

The company said it expects to report a 7 cents per share pro forma loss in its second quarter, which is in line with analyst's forecasts.