Palm unveils plan to reduce operating costs, reports lower revenues

To save $20 million in operating costs, Palm said that that it will cut its workforce in the US, "consolidate" European operations, and shift responsibility for Asia Pacific sales, marketing and administrative support to the US.

Palm expects its revenue to be between $190 million to $195 millionfor the second quarter of fiscal year 2009 citing "reduced demand for maturing smartphone and handheld products".

The company blaimed "difficult economic environment" for making matters even worse for the company.

"We are seeing unprecedented dynamics in the global markets as economic uncertainty hampers demand for consumer products," said Palm chief Ed Colligan.

RIM, Nokia, HTC and Apple are giving Palm a beating in handheld and smartphone sales, as consumers demand for hi-tech gadgets increase. Palm meanwhile has repeatedly delayed the release of its much-awaited new operating system.

Palm's latest smartphone, the Treo Pro, is powered by Windows Mobile, while its Centro is run by the competent but old Garnet operating system.

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