Rumor Mill: HP slashes at least 500 Palm jobs from payroll

Hewlett-Packard has started cutting jobs from its webOS business unit and as many as 525 jobs could be lost, according to an AllThingsD article, which cited unnamed sources.

The report said the layoffs of former Palm webOS staff started this week. HP confirmed the job cuts but did not go into specific numbers.

"As communicated on Aug. 18, HP will discontinue the development of webOS devices within the fourth quarter of fiscal year 2011, which ends Oct. 31, 2011," an HP spokesperson told AllThingsD. "As part of this decision, the webOS GBU is undergoing a reduction in workforce. Today's actions are part of this initiative. During this time, we stand by our commitment to our webOS customers and will work to ensure that support and service for customers are not adversely affected. HP is exploring ways to leverage webOS software."

The job cuts are somewhat inevitable given HP's decision to discontinue selling webOS devices.

As part of its efforts to shut down the business, HP is essentially liquidating its inventory of webOS TouchPad tablets. HP cut the price of the TouchPad from $399 to $99 for the 16 GB version and from $499 to $149 for the 32 GB model. HP was subsequently flooded with demand for the tablet. It costs HP $306 to make the 16 GB model, according to an estimate from IHS iSuppli. In a blog posting in late August, HP said it will build a limited quantity of TouchPads during its fourth fiscal quarter, but said it remains committed to winding down its webOS device operations.

For more:
- see this AllThingsD article

Related Articles:
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HP pledges support for webOS, slashes TouchPad prices
Selling webOS: The toughest job in the mobile industry
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