The
One Laptop Per Child Foundation (OLPC) has been dealt a huge blow following a severe decline in
laptop sales. The organisation released figures last week revealing that just 12,600
laptops were shipped over the festive period, generating a meagre $2.5 million. That figure is down by 93 per cent on the same period 12 months ago, with many citing restricted consumer spending as a major factor in the company’s dire
PC sales.
As a result of the downturn in revenue, the foundation has axed half of its work force, whilst the remaining 32 have been forced to take payments. Similarly, the company have slashed their budget by more than 50 per cent.
Founder of the organisation, Nicholas Negroponte, said, ‘The financial results have been a real shocker. We are cutting cost and reducing our budget to run at about $5 million. But, we're going to keep going and we're going to expand.’ Mr Negroponte added that the foundation will now focus on distributing the
notebooks to sub-Saharan Africa, the Middle East, Afghanistan and north-western Pakistan, with the remaining resources focusing on creating a second generation laptop.