According to a report on CNet: "The Sunnyvale, Calif.-based company laid off employees from all divisions within the company, according to Gabi Schindler, PalmSource's senior vice president of marketing. Schindler declined to comment on the specific number of employees let go."

The article also reports that Palm prepares to spin off the PalmSource subsidiary, and one of the major shareholders in the PalmSource subsidiary will be Sony, which currently has 6% of the company.