AllThingsD reports Nokia's cuts have led to the demise of the Linux-based, low-end smartphone mobile operating system called "Meltemi." Nokia cut 10,000 jobs as its quarterly forecast was revised again.

AllThingsD said the project was aimed at offering "smartphones at prices that neither Android or Windows Phone could easily reach," but would have meant building a new operating system where developers are needed. The downfall of webOS was due to a lack of developers, and Nokia's ill-fated Meego mobile OS was never given a chance despite plenty of promise.

Sources speaking to AllThingsD said the project has gone, though Nokia never officially confirmed the project so probably won't confirm its ending. Elements of the OS, like those found in Meego on the Nokia N9, could live on in another form. At CES during January 2012, Nokia CEO Stephen Elop said elements of Meego may be seen in Windows Phone.

Elop was asked during a conference call if Meltemi had ended, and said the company is cancelling some projects but he has never named them.

However in a press release, Nokia reaffirmed its commitment to the low-end smartphone market with Series 30 and 40 devices and the new Asha line of Series 40 devices. Mary McDowell, who led the low-end phone business, has left the company.

AllThingsD's source also said Nokia is working in the tablet area, despite no product announcements.

Layoffs were a result of a weaker-than-expected smartphone business due to competition from Google and Apple. Operating margins in its "core devices and services business" will be worse than Q1's negative-three percent. "The strength of Android, particularly as it pushes down in price point, is clearly something that has caused a lot of challenge," Elop said in a conference call with analysts June 14.

In a statement Elop also said Nokia will continue to pursue its Lumia devices for Windows Phone, but said the company "must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions."