The One Laptop per Child foundation has announced that due to "tough economic times" it is cutting staff by 50%.

A statement from OLPC boss Nicholas Negroponte on the company's blog reads as follows:

"Like many other nonprofits that are facing tough economic times, One Laptop per Child must downsize in order to keep costs in line with fewer financial resources".

"Today we are reducing our team by approximately 50% and there will be salary reductions for the remaining 32 people".

In addition, the OLPC will be passing on the development of the Sugar Operating System to the community.

Despite the staff cuts, Negroponte has announced that one of the foundation's focuses will be the development of a Generation 2.0 machine, as well as a no-cost connectivity program, and "bringing the cost of the laptop down to zero for the Least Developed Countries - the $0 Laptop".