HP Rumors: Palm Layoffs, webOS TouchPad Lives? HP PC Div Sale?

Palm webOSHP has been the subject of many rumors - sales of webOS TouchPads, layoffs and sale of the PC division.

Termination of former Palm webOS staff started this week.  HP confirmed the job cuts but did not go into specific numbers.  Some are saying that as many as 525 jobs were cut. On the brighter side, employees who are still working on 9/28 will be able to buy discounted new stock of HP TouchPads.

An email from an HP spokesman said:

“As communicated on August 18, HP will discontinue the development of webOs devices within the fourth quarter of fiscal year 2011, which ends Oct. 31, 2011 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.”

Meanwhile, we daily get requests from readers who want to buy a $99 TouchPad 16GB tablet. although we have found some scams, it looks like October 31 will end all TouchPad development.  There is a lot expected of 100,000-200,000 TouchPads coming that will be tough to find.

HP chairman Lane Ray Lane an interview with CRN said hat a final decision has not yet been made on how to sell the HP PC business unit "If...we can't offer a better proposition to customers and investors...it stays inside HP."

The PC business produces huge cash flows but low profitability for HP noted Lane.