Following HP’s decision to nix its TouchPad tablet, HP (HPQ) confirmed that it will lay off employees related to the tablet operation.

Word is that HP will lay off over 500 employees, however HP declined to comment on the number of lay offs.

The TouchPad was HP’s response to Apple’s iPad. However, as the iPad continues to fly off shelves, the TouchPad has been struggling. Since there has been a fire sale on the devices, $99 for a 32GB TouchPad, however it is proving difficult to sell the 200,000 units produced.

HP even started a “HP TouchPad Apps I Can’t Live Without”, to drive consumers interest but it never worked.