As part of an effort to restructure the company Handspring has laid off 20% of it's global workforce. The cuts, which hit the marketing department especially hard, are primarily due to the company's new focus on the Treo line of handhelds, and Handspring's dedication to becoming profitable.

In the shift towards the Treo devices Handspring is leaning more towards developing relationships with carriers rather than focusing heavily on marketing to individual retail outlets. This shift has lessened the need for a large marketing team.

The smaller workforce will also mean a much lower labor cost. Handspring says this reduction will allow the company to break even at a much lower revenue level.

While analysts agree that the cuts will help reduce costs they still feel that Handspring has to face up to the larger task of finding a way to sell it's Treo devices. Reports have showed the Treo 180 and Treo 270 devices have been selling at a very slow pace, and the recently released Treo 300 appears to be headed in that direction as well.