One Laptop Per Chewbacca writes "Nicholas Negroponte, the leader of the One Laptop Per Child (OLPC) project, has announced that the organization will be laying off half of its staff, cutting salaries of the remaining employees, and ending its involvement in Sugar development. The organization has had serious problems with production and deployment and has been fragmented by ideological debates as Negroponte shifts the agenda away from software freedom and towards Windows. Ars Technica concludes: 'The OLPC project's extreme dependence on economy of scale has proven to be a fatal error. The organization was not able to secure the large bulk orders that it had originally anticipated and fell short of meeting its target $100 per unit price. The worldwide economic slowdown has made it even more difficult for OLPC to find developing countries that have cash to spare on education technology.'"