OLPC latest to be struck by economic downturn

by Stevie Smith - Jan 9 2009, 07:34

In the same week that has already seen Dell Inc. cutting 1,900 jobs from its Limerick production facility in Ireland, the economic squeeze has also impacted the One Laptop Per Child (OLPC) initiative, which is to bid farewell to half of its workforce.

OLPC loses half its staff to economic gloom. Image: curiouslee/Flickr.

Founded by Massachusetts Institute of Technology (MIT) professor Nicholas Negroponte, the non-profit OLPC program is responsible for creating the durable and budget XO computer, which has been designed to improve educational standards in developing nations.Confirming the losses in a blog post on Wednesday, Mr. Negroponte explained that “tough economic times” have taken their toll on the OLPC’s non-profit operation, which has forced downsizing “in order to keep costs in line with fewer financial resources.” As a result of the OLPC job cuts, the organisation will be left with just 32 employees, all of whom will retain their jobs but will also be forced to shoulder salary reductions.The iconic green and white XO laptop is offered to the governments of developing nations for $199 USD per unit when they issue mass orders. While already cheap and accessible, the organisation hopes gradually declining hardware and production costs will eventually see its XO priced at a mere $99 USD. Having thus far failed to amass the appeal Mr. Negroponte initially envisaged for the XO, the organisation also offers the little laptop to general consumers through its $400 USD ‘Give One, Get One’ (G1G1) initiative, which sees the buyer receiving a single unit, while the second is donated to a needy child.However, given the recent popularity surge attributed to the superior performance of similarly priced Netbook computers, willingness to invest in the XO has likely shrunk to those with a strictly charitable nature.Around 500,000 units of the XO have been sold around the world.

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OLPC latest to be struck by economic downturn

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