HP begins layoff in the WebOS team

After about a month of shutting down the production of its mobile devices, Hewlett-Packard Co. has started lay off in its mobile device unit which makes the webOS operating system. The company has started winding down since Monday. HP said the layoffs were part of the company’s decision to shut down the mobile devices business by the fiscal fourth quarter, which ends Oct.31.

According to a spokesman for the Palo Alto, California, the webOS (unit) is undergoing a reduction in workforce. The company is planning to inform those employees by the end of September, he added. But the number of employees to face this layoff is uncertain as HP declined to say about it.

Roughly after three months of the sale of HP’s ill-fated TouchPad the layoff has started.  The device was at first touted as the competitor of Apples iPad but then it failed to raise its sale even after dropping its price by 20%. HP later had to sell the tab for $99, taking a loss of $207 per unit based on IHS iSuppli’s, a research firm evaluation of Touchpad’s manufacturing costs.

Though after the price was reduced to $99 there was a great demand for the tab and even the last unit may have been sold out. The long line of the retailers including Best Buy Co., promoted HP to create another batch of touchpad in order to meet the demand but the company reported that they don’t have plans to re-enter the device business.

For the webOS customers HP said they still stand by their commitment despite shutting down the whole mobile device business. They also mentioned that they might licence webOS to other manufacturers.

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