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PalmOne today said it will rid itself of around 100 workers - 12 per cent of its headcount - in a bid to streamline the company following its acquisition of Handspring.

Todd Bradley, the PDA maker's president and CEO, described the decision to embark on this "second phase" of the integration of the two companies as "tough but strategic".

The move centres on a "rebalancing" of the investment split between its PDA and smartphone divisions, and will "enable us to reduce overall spending", said Bradley. That, he hopes, will help the company achieve profitability in fiscal 2005.

The company is currently a month or so into the third quarter of its 2004 fiscal year, so it's giving itself plenty of time to achieve the "growth and profitability" it's after.

The company declined to state what financial impact the redundancies will have, or when it will account for the cost of the restructure, which will leave it with 740 employees. ®

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