Palm to Cut Jobs

Web site C|Net News.com is reporting that Palm is cutting an unspecified number of jobs starting this week. Palm spokesperson Jim Christensen was quoted by C|Net as saying,

"It's a small percentage of our work force," 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.

I'm not surprised by this move, actually. When listening to the press conference announcing that Elevation Partners was taking a 25% stake in Palm, officials from Elevation talked about having small teams of talented people working on specific projects. The current round of lay offs at Palm would seem to indicate that the partnership with Elevation is already having an impact on the company.