According to the Independent, News International has abandoned a project to produce content for the company's brand on the Apple tablet and similar devices.
Murdoch had set up a team called Project Two22 to bring about newspapers on tablets, but the scheme has been a failure and the staff have been shipped back to Wapping.
They were building apps that specialised in entertainment news and sport. The hope was to find a way to use the iPad to draw a more upscale audience to The Sun's content.
The project was the last gasp for many staff from the disgraced News of the World, who were shifted over when the rag closed down in July over the phone hacking scandal. They have now been offered a choice of working for the Sun's digital department or getting a redundancy cheque.