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Blames PDA slump

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Palm's hardware division, Palm Solutions, laid off 200 staff this week, citing market conditions. 1200 remain.

A week ago the software division PalmSource, which is due to spin off from the mothership, laid off 20 percent of its workforce, as we exclusively reported here. The de facto head of engineering Steve Sakoman also left PalmSource last week.

(We did head up to the PalmSource yacht, as promised, in Cannes last week. But the sole PalmSource representative on board, a French employee, couldn't help us with our enquiries.)

PalmSource is racing to complete "version 6.0" of the OS, a radical overhaul which gives its licensees - including Palm Solutions, much more competitive devices. We expect to see a device featuring this from Handspring "later than spring, but before the end of the year," according to company sources. ®

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