According to a Reuters report yesterday, smartphone maker Palm Inc. (PALM: sentiment, chart, options) is the latest U.S. firm to announce job cuts. Company spokeswoman Lynn Fox reported that layoffs will start this week, though she didn't specify how many positions would be eliminated. "The goal is to consolidate resources and focus our efforts more effectively," Fox stated. Sunnyvale, California-based Palm employs 1,050 workers.

The layoffs at Palm coincide with increasingly stiff competition in the smartphone market. Apple's (AAPL) iPhone and recent upgrades to the BlackBerry by Research In Motion Limited (RIMM) have combined to chip away at Palm's market share.

PALM is extending its losses this morning, down 1.8% at last check. The stock has tumbled 65% year-to-date, and is wallowing near a 5-year low on the charts. Even as PALM trades near the 2 level, many option players are betting on more downside. On the International Securities Exchange, more than 5 times more puts than calls have been bought to open during the past 10 days.