HP confirms layoffs at Palm unit

By , Network World |  IT Management, HP, Palm

HP CEO Leo Apotheker delivers the keynote address at the HP Summit in San Francisco, California March 14, 2011.

REUTERS/Stephen Lam

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 HP announced a sweeping reorganization and refocusing of its business.

News reports say 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.

TIMELINE: The decline, further decline and collapse of webOS

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

HP bought the struggling Palm 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 smartphones and tablets. [see, "HP's Apotheker changes his tune on mobility"]

John Cox covers wireless networking and mobile computing for Network World.

Twitter: http://twitter.com/johnwcoxnww

Email: john_cox@nww.com

Blog RSS feed: http://www.networkworld.com/community/blog/2989/feed

Read more about data center in Network World's Data Center section.


Originally published on Network World |  Click here to read the original story.
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