Well, unfortunately for some of Palm's employees, Palm has decided to make some cuts. It's been less than two weeks since Palm announced plans to sell a stake in the company to Elevation Partners. Elevation Partners is pouring $325 million into Palm, while at the same time, Palm plans to borrow another $400 million and return more than $900 million in cash to its shareholders. Now that's a LOT of money moving around!

Palm employees were still in the process of being notified of the cuts Thursday afternoon. Some of those cuts are being made immediately and others will take longer to implement, Palm's spokesman Jim Christensen told News.com:

It's a small percentage of our work force," Christensen told News.com, adding that Palm still has openings in some areas. The bulk of the jobs being eliminated are in the U.S. and in Palm's development ranks, though there are some cuts across the company, he said.

According to Christensen, the cuts aren't about cost-cutting, but it's about restructuring or reorganizing Palm's team to increase the direct project accountability. In Christensen's words, it's about "eliminating some of the hierarchy."

It's been a busy month for Palm corporate news. They avoided a total buyout in favor of some investment and new board members. They announced their new product, the Foleo. They even, for those that were paying attention, rolled out (the first version of) their new Linunx OS on the Foleo. Before all this has sunk in, now some of their employees are getting the axe. Stay tuned for what other developments come about with Palm.

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