HP, reacting to rumors that the company is planning to downsize its webOS division, has confirmed that there have been layoffs but would not comment further. The company reportedly has plans to eliminate as many as 500 positions.
“As communicated on August 18, HP will discontinue the development of webOS devices within the fourth quarter of fiscal year 2011,” an HP spokesperson told reporters. “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 groundwork for these layoffs was laid in August, when HP announced that it would stop manufacturing hardware based on the webOS used by Palm, an HP acquisition. The company has said that it is considering spinning out its entire PC business.
HP acquired Palm for $1.2 billion more than a year ago.
Read more at ZDNet.