Palm axes an undisclosed amount of employees, sort of blames itself

My, my -- how's this for truth in advertising? Palm InfoCenter has confirmed with a Palm spokesperson that the flagging outfit will be laying off an undisclosed amount of employees as the economy worsens and the firm attempts to keep that final nail from being slammed down on its coffin. According to the spokesperson, the company will undergo a certain amount of restructuring (sound familiar?) that will "result in company reductions in the US and internationally." Incredulously, the statement also included this gem: "The global economic downturn continues to dampen demand for consumer goods around the world, and the impact on the economic environment is worsened by our maturing Centro line and the length of time it is taking to ramp our new Windows Mobile products." We won't say for sure that it's actually taking some of the blame here, but it sure sounds like it. Now, if only it would take charge of its future...

[Image courtesy of DayLife]

[collegekid13 @ Nov 21st 2008 11:09PM]

well maybe if their os wasn't so outdated. my olddd zire 31 still has the same os as new palms and thats just sad

[Loonie @ Nov 21st 2008 11:39PM]

In what area(s) exactly do you find the OS lacking?

[scootinger @ Nov 21st 2008 11:42PM]

Hell, the OS on my brand-new Centro isn't all that different from the OS on some of the first Palms a decade ago. Don't get me wrong...my Centro does the PIM stuff that I want it to, but Palm's software is in DESPERATE need of an update. I'm having problems with HotSync and my Mac...I wouldn't be surprised if it's because Palm Desktop on Mac hasn't been updated in YEARS! I went from a Samsung Blackjack (which started giving me problems) to the Centro on AT&T...the Centro is over a year newer than the Blackjack and it doesn't even support 3G, when the Blackjack did. (I'm told this is because of limitations on Palm's archaic OS.)

I honestly wish Palm was able to stay afloat and develop good products, but unfortunately the dumbasses in charge of the company haven't really done a thing aside from create vaporware. *cough* PALM OS 6 *cough*

[Tony @ Nov 22nd 2008 12:04AM]

"...it doesn't even support 3G...(I'm told this is because of limitations on Palm's archaic OS.)"

Palm's OS does support 3G. Specifically, the CDMA version of the Centro does support 3G; your GSM version is limited to EDGE.

Also, maybe you should get that cough checked out; it's nearly flu season.

[scootinger @ Nov 22nd 2008 1:34AM]

What I meant (to be more specific) is that Palm devices can't support UMTS/HSDPA due to a limitation within the Palm OS. Basically UMTS requires the use of the voice and data connection at once, which supposedly the Palm OS (or at least its network library) cannot handle. However, the 3G on Sprint/Verizon/etc does not work the same way, meaning that a 3G Centro is available for these networks.

Basically limitations within the Palm OS (as well as the company's incompetence in developing a new OS) are preventing Palm from being able to develop devices that can use AT&T's implementation of 3G.

[Valicore @ Nov 21st 2008 11:30PM]

Palm should file for Chapter 11, get some Android engineers in and make a last ditch effort. The new Palm OS is the biggest piece of vaporware crap ever to not-have-been seen.

[ED @ Nov 22nd 2008 1:21AM]

But does it run Duke Nukem Forever?

[loosely_coupled @ Nov 23rd 2008 1:40AM]

Exactly!!! They would be absolute FOOLs to continue spending cash on their 5+ year Vista-esque operating system adventure.. To survive, they should focus all of their software engineers and designers on improving and dressing up a custom version of Android that can be their standard platform for the future.
Then they need to spend all their money on industrial designers and hardware engineers who can actually make a next-gen cutting edge smartphone...Just remember how awesome the original Treo was when it came out like 5 years ago! They need a new killer device like that. Their whole line needs to start with quality engineering and good, solid components like TI OMAP 3xxx series chipsets or Qualcomm Snapdragon. They really have to hit it out of the park with an iPhone/Blackberry killer if they are to survive...

[Jon Acheson @ Nov 24th 2008 10:56AM]

Their real problem is, Palm has been chasing the Next Great Amazing Wonder Thing for the better part of this decade, without ever actually putting out the Good Enough Thing That We Were Just Working On that would have kept them in the game. If they had actually put out devices using either Palm OS 6, or ALP, they wouldn't be in this situation.

They need to get something out the door, not start all over again for the nth time.

The best solution would be for them to man up, admit their mistake, and license ALP, which they could put on a new device TODAY.

[Kobe @ Nov 21st 2008 11:32PM]

:-)

[ropeburn @ Nov 21st 2008 11:32PM]

didn't we all own a palm pilot?
... I mean, back in the day.

I had a Palm V
that damn graffiti... sigh.
....sad to see them circling the drain.

[spam_free @ Nov 21st 2008 11:38PM]

It really is too bad Palm has come to this. They may not be the first, but they sure made the PDA popular. No matter how much I hated Graffiti and the idiot beeps the Pilots made, I have to hand it to them for bringing a good idea to mass market. Now, if only they hadn't blown all that cash on useless pork projects like the Foleo...

[Brian @ Nov 21st 2008 11:38PM]

Palm has always had great hardware.

Ditch that GIGANTIC PIECE OF CRAP operating system, make an Android handset and a Windows Mobile handset, and focus on making the things thinner.

[Craig @ Nov 21st 2008 11:39PM]

Palm + Android COULD still result in some damned good devices. Why, why, why, Palm, do you insist on doing this whole Linux thing yourself when someone else has already done it AND their damned OS doesn't cost anything for you to license? Are you stupid or just that arrogant?

[Steve @ Nov 22nd 2008 12:41AM]

Well if anyone knows a little history of the company, they would understand this. It was founded around Jeff Hawkins invention on handwriting recognition (out of his biophysics PhD work at Berkley) the so termed graffiti. They licensed out the manufacturing (first to Tandy, then to US Robotics, then 3Com, then Handspring, then PalmOne, it's a mess) and developed the Palm OS with which they hoped to compete against Windows CE. Palm never had good management (how many times did they changed their name?); they had brains but zero financial oversight.
If they switched to Windows or Android, well then their source of revenue is gone, since they pretty much give up all the patents and licenses they own and become another handheld manufacturer, which they never were! And I disagree, I'm a believer in the Palm OS, I think it's the best OS around, it's a shame that their market segment vanished and they found themselves in no-mans land, but they were once on top of the world (by just a simple algorithm) and I guess bad management and ridiculous licensing fees for the OS meant their demise. I'm glad that Jeff Hawkins continues his brilliant work in neuroscience. Who knows what he might spin off next?

[Valicore @ Nov 22nd 2008 12:48AM]

@Steve:

I agree that Palm OS could be an advantage; however, I still think they should make a few Android devices (their hardware Android as the OS) to at least get them back on the map, somewhere, anywhere. I know it's unlikely but maybe that would give them enough latitude to finish the next version of Palm OS and come back.

[Fusion Fuzo 05 - Mr Proffessional @ Nov 21st 2008 11:46PM]

NICE, no more palm

[Dave Chappelle @ Nov 22nd 2008 3:29AM]

you do realise that the industry is an Oligopoly and that this only means that prices will go up, don't you?

The only company i would be happy to see go is G.M (and it may be likely now), and this is because their 'Holden' range which is the dominant car in Australia is the worst car considering the circumstances. They make bigger, heavier more fuel consuming cars every 2 years called the 'Commodore' and Australians have to resort to them because tariffs on Toyota's, Honda etc. This company is counter-competition and seeing it go would not be that bad, on the other hand seeing PALM go which is a formidable mobile phone (+) company is no good in an already highly priced industry [Blackberry Storm, HTC HD/diamond, iphone, Xperia (sorta) etc].
hope my case study taught you something ;)

[Dave Chappelle @ Nov 22nd 2008 3:32AM]

oh ye and in my opinion getting that low ranked is not enough I reckon Engadget should bring in something that starts taking off letters/vowels of low ranked comments slowly to make the 'perpetrator' look more and more stupid.....

[Mike @ Nov 21st 2008 11:50PM]

It's a cryin' shame that Palm can't figure out how to build a new Palm OS, it's incredibly hard to tell the legions of Palm faithful that come into my store that they have to switch to Windows Mobile.

[digitallysick @ Nov 21st 2008 11:50PM]

They should switch to android asap, Palm was a good OS, we already have to many win mo devices with all the same options, its a saturated market.

Palm, give me this , android, touchscreen, bluetooth (unrestricted) 5 megapixel cam or better, quadband, 3g, wifi, either slide out qwerty or on screen. Micro sd slot. I would buy it, if it was fast enough.

[Tony @ Nov 21st 2008 11:54PM]

"...either slide out qwerty or on screen..."

Then it wouldn't be a Palm. I believe Palm hardware is so great because the keyboard is NOT a slide-out and NOT an on-screen one. The candy bar form factor is the most efficient and easiest to use; coupled with Palms amazing keyboard; it's hard to beat in terms of form factor.

[Zadillo @ Nov 22nd 2008 12:09AM]

I think that's the big question..... what is Palm doing to entice people to come back to their platform? I was a Palm user for a long time..... from a Palm III to a Palm Vx to a Treo 650. But when my Treo 650 finally crapped out (weird problem where it would no longer charge unless I held the charging cable docked in JUST the right position), I didn't feel really compelled to get another Treo. Between the iPhone, Android, the latest Blackberries, Symbian S60 devices, and even the WinMo devices like the HTC Touch and Xperia, a Palm OS-based system would be pretty much at the bottom of my list of things to get. Back when I did still have my Treo I was impressed by what some third party devs were still managing to squeeze out of that platform, but it all kind of pales in comparison now.

So that's the big question I'd like to see Palm answer; what are they going to do to convince a longtime former Palm user like myself that I should consider another Palm device running the current Palm OS? And if there is no answer to that, what are they doing about their new OS?

Like some others here, I also wonder why Palm doesn't just go ahead and make an Android-based device, add some of their unique Palm touches like they did with WinMo, and maybe port a Palm compatibility layer to it to make it seamlessly run some of the great third party Palm app library (one of the things I still miss to some degree).

[A.R. @ Nov 22nd 2008 12:13AM]

I think if they realize the new OS as promised next year, and its great, they can turn the company around.
They need new software and phones to stay competitive.
But I don't think we should write them off so fast. Remember, back in '97 people were writing off apple as well.

[Valicore @ Nov 22nd 2008 12:43AM]

Unfortunately, Palm doesn't have Steve Jobs to call in to revamp the company. As much of an asshole as he is, he does know how to make a profitable and successful business.

[dagwud @ Nov 22nd 2008 10:05AM]

Yes, but leak something already. Give us some reason to wait.

[BluVoodo @ Nov 22nd 2008 12:32AM]

Not sure you can blame all the problems on their OS. The truth which they won't admit is that iPhone artillery is
too heavy for them to handle. Even RIM is feeling the blazing heat. It is going to get worse because Apple
is going to unleash more artillery in January.

[TechMage89 @ Nov 22nd 2008 1:16AM]

I just have to say this, because it's too perfect:

facepalm

[kg @ Nov 22nd 2008 1:16AM]

How can a reputable blog actually write something like "amount of employees?" "Number" is obviously the right word.

[Valicore @ Nov 22nd 2008 1:32AM]

a·mount
n.
The total of two or more quantities; the aggregate.
A number; a sum.
A principal plus its interest, as in a loan.
The full effect or meaning; import.
Quantity: a great amount of intelligence.

[Myrkle @ Nov 22nd 2008 4:29AM]

Sigh. In the long run proper usage is determined by common usage, and so, we're doomed with this one. However...

OP is correct, when you can count something individually it should be "number", hence: "Palm axes an undisclosed number of employees".
When something cannot be counted individually it should be "amount": "There's a large amount of sand on a beach."

Just search for "amount versus number" in your favorite search engine.

But as I said, this one's a lost cause I'm afraid.

[strider_mt2k @ Nov 22nd 2008 9:10AM]

It's better to burn out than it is to rust.

Hey hey, myy my...

[dudedude @ Nov 22nd 2008 9:33AM]

what did they axe them?
this seems like a miss leading title....
I assumed that palm axed their employees a question, but nowhere in the body of the article does it state what the question was?
am I missing something?

[crsh @ Nov 22nd 2008 9:44AM]

Wait, Palm is still around? That's like hearing about Iomega or Real Networks, it takes me 10 years back.

[dagwud @ Nov 22nd 2008 10:07AM]

Actually, Iomega's still around because they updated and diversified their product line.

[LonnieDvD @ Nov 22nd 2008 10:12AM]

Oh joy, yet another company is getting rid of people. This terrible economy might turn into another depression if things don't turn around soon. The way these layoffs are going, half of the people in America won't even have a job by 2010.

[ctgaffney @ Nov 22nd 2008 1:44PM]

The amount of fired employees is "undisclosed" because they weren't sure how many of them got the memo on their Palms

[yrag @ Nov 22nd 2008 3:52PM]

The first person laid off should have been Ed Colligan, the CEO of Palm. It's obvious that he lacks the qualities of leadership. He allowed an innovative category leader to drift into pathetic irrelevance.

By the time they get a new OS out the door, (assuming they'll still have a door to get it out of) it'll probably be OOA— obsolete on arrival.

I own an old Palm 650 and an iPhone, I still find the Treo much easier to use and get things done on. Don't get me wrong, for sheer "WOW" factor the iPhone can't be beat especially now with the Apps Store. But for day-to-day ease and quickness I feel for me the Treo 650 has it all over the iPhone. One of the biggest reasons is iPhone's lack of real keys.

I have been able to key in some fairly long and involved emails and memos on this little guy, and I also find getting in and using key apps is quicker and with less steps (maybe because iPhone's apps offer more features(?) than the Palm apps). obviously iPhone kills the Treo 650 on web browsing, but as of now for me that's the only catagory.And finally my last reason— three words: "cut-and-paste'. The lack of it on the iPhone is a real shortcoming for productivity.

So I'm not ready to consign my Treo 650 to the back of a drawer just yet, but sadly that's where my hopes for Palm's future has ended up.

As ropeburn said, "....sad to see them circling the drain."

[Ratazana @ Nov 23rd 2008 4:05PM]

It's NUMBER of employees. Not AMOUNT.

Employee is countable.

Amount is for non-countable. e.g. amount of money, number of tables, amount of sand, number of stones.