The struggling mobile device maker said revenue for the second quarter of its fiscal 2009 will come in way below analysts' expectations of $299 million to $363.4 million, according to Reuters Estimates. Instead, it will hit somewhere between $190 million and $195 million.

Palm, which announced layoffs last week, cited the shaky global economy as the main culprit.

"We are seeing unprecedented dynamics in the global markets as economic uncertainty hampers demand for consumer products," Ed Colligan, Palm's president and CEO, said in a statement.

"In order to ensure Palm's long-term success during these uncertain times, we're taking several steps to significantly reduce our cost structure," he added. "These measures will help us navigate this difficult period while launching our next-generation products as planned."

The measures include consolidating operations abroad and moving oversight of its Asia-Pacific business to U.S.-based operations.

According to a statement, the company expects the actions to reduce operating expenses in its fiscal fourth quarter by about $20 million, compared to its first-quarter 2009 levels. Palm reports its next financial results on Dec. 18.

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