Palm reduces labour force to face economic trouble

As Palm loses its market share to Apple Inc. and Research in Motion (RIM). The goal is to cut costs and refocus their efforts to fight the current economic conditions and compete against the intense innovative rivalry in the electronic hand held and smart- phone product market. Palm, which employs 1 050 workers, makes the Centro and Treo smartphones. The company's market share has been shrinking, with RIM's BlackBerry becoming the device of choice for the business set and Apple's iPhone, a consumer phenomenon.[1] In order to turn the company around, the organization will have to raise substantial capital to have a healthier cash flow, which is always useful in this hard economic period.

Apple Inc. and Blackberry continue to dominate the smart-phone market with much success. These highly innovative companies have staved off competition through means of product differentiation and diversification, something which Palm may be at a disadvantage with. Unlike Palm, Apple Inc. and Blackberry show more versatility with healthy inflated cash flows that allow for flexibility in times of financial crisis. Dynamic companies can adapt to more dynamic times easier.

In order to catch up with Apple and RIM, Palm has hired former Apple supervisors John Rubenstein and Mike Bell, but still has a great deal to conquer. A recent study found that only 5 percent of companies would purchase a Palm-based smartphone over the quarter, down from 10 percent in the year ago quarter, while 78 percent sought BlackBerries, and 22 percent wanting iPhones. Palm is also struggling to deal with an imminent looming cash shortage, according to a Morgan Keegan forecaster. The company is allegedly investigating several routes to stay away from additional monetary predicaments.[2]

Sun Microsystems to reduce jobs

In the midst of a predicted prolonged economic gloom, Sun Microsystems has announced that it plans to cut up to 18% of its workforce; that is 5,000 to 6,000 employees.

The move comes as business and orders weaken due to the global financial crisis. Hewlett-Packard, Yahoo, eBay, Applied Materials and SanDisk are amongst other technology companies to declare profound job slashes in recent weeks, and bellwether firms Intel and Cisco have pronounced a decrease in demand and sales slowdowns.

Many start-up companies have also slashed jobs as the economic crash that began in housing and infected the financial sector destabilizes technology niches from chips to peripherals to computing.

The objective again is to remain flexible and competitive while reducing costs across the board in order to ride out the financial storm. The cutting of costs will save anywhere between $700 and $800 million annually for the company, helping with much needed cash flow. Indirectly, it has been hit by the slowdown in the housing market and the problems of risky mortgages.

Their clients are going out of business because they cannot afford their business mortgages and hence Sun Microsystems contracts have been cut short and their orders stagnant. It is all linked, like a domino effect, one major market tumbles and the trickle down effect happens affecting the livelihood of banks, businesses, jobs and people in general. Realigning and restructuring their operations is imperative for Sun Microsystems at this point in time. The quicker it can act, the better its resolve.
Sun's restructuring is expected to reduce expenses by about $US700 million to $US800 million annually. It expects total restructuring charges in the range of $US500 million to $US600 million over the next 12 months.

Woolworth seeking to be rescued

The list of struggling companies worldwide just gets longer and longer. Everyday you expect to hear financial meltdown across various industries. With over £300 million in debts, the company is finding it very hard to operate its 800 retail shops in light of the credit crunch. Even the sale of the company has been brought to the table.

American Hilco, the reorganization experts are looking into buying the company straight out and assuming its debt. If a deal is not reached soon, 30,000 jobs are on the line. This is a time of caution and damage control for Woolworths seeking to survive in the present financial crisis. The aim of Woolworth’s is to be bought out or seek help in cutting down operations strategically and becoming leaner.

The fierce ever growing competition in the market and the rise of Internet commerce over the past 15 years or so has put Woolworths, over the years, in an awkward financial situation. With a narrower focus on family and home entertainment, it can be argued that Woolwoths has lagged due to its traditional habits and not being quick to compete or diversify its product range vis-à-vis the competition. Companies like HMV, ZAAVI, Arogos, Asda, Tesco and Primark have contributed to the demise of Woolworths, and now it is left far behind with a poor selection of products and quality, as well as bad pricing strategies. I never knew they had 800 shops; maybe I’ve been blind all these years. I’m just used to seeing the occasional odd shop in the occasional odd and run down area.

Chasing the rich in Monaco

Allistair Darling tightens screw on wealthy Britons and their Riviera refuge

The chancellor started his battle against Britain’s super-rich by pressing for sanctions against Monaco, the Mediterranean tax haven.


Under one proposal, to be discussed by Alistair Darling with European finance ministers on Tuesday, there will be a levy on any money transferred to a Monaco account from anywhere in Europe.

Precise policies will be discussed the following week at a meeting of Europe’s tax authorities in Berlin.


The threat of sanctions marks an escalation in the battle between European governments and the continent’s three remaining tax havens: Liechtenstein, Andorra and Monaco.


“So far the attention has been on Liechtenstein, but Monaco is the goldmine,” said a Whitehall official. “Germany has got the bit between its teeth now and Monaco is where they want to go next – and we’re right with them.”

How will it affect monaco?