HP confirms layoffs at Palm unit

20.09.2011
HP has started laying off workers associated with last year's billion-dollar acquisition of Palm, as it closes down the mobile device business it planned to base on Palm's webOS. The news comes almost exactly a month after a sweeping reorganization and refocusing of its business.

that HP has confirmed the layoffs have begun, but declined to say how many will end up with pink slips. AllThingsD, The Wall Street Journal's tech blog, says the number could reach 525.

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"As part of this decision, the webOS (unit) is undergoing a reduction in workforce," according to the .

HP last year, to launch a new mobile product line based on webOS, which was introduced by Palm with the Pre smartphone. This summer, HP unveiled the HP TouchPad, its first entry in the hot tablet computer market.

But within weeks, in the face of bad reviews and lackluster sales, HP scrapped the device, and CEO Leo Apotheker unveiled the company's new strategic directions, which don't include and tablets. [see, ""]