Palm has laid off another 50 people in its hardware unit as the company grapples with declining demand for its PDAs.

The news means the company's hardware unit has lost just over 100 jobs in the third quarter of its financial year, which ended last Friday.

Combined with lay offs in its operating subsidiary, PalmSource, the cutbacks over the past three months amount to about 19 per cent of the total combined workforce. Palm now employs around 900 people.

Palm has been restructuring heavily as it faces a depressed market. The worldwide PDA (personal digital assistant) market saw its first-ever decline in 2002 with shipments down over 9 per cent from 2001, research firm Dataquest, a unit of Gartner, claimed.

For the three months ended November 29, 2002, Palm reported a net profit of $3.52 million on revenue of $264.9 million, according to the company. Palm is scheduled to release its third-fiscal-quarter earnings on March 20.