Chipmaker Arm, which is owned by Japanese technology giant SoftBank, is preparing to reduce its workforce as a result of the collapse in February of a $40 billion deal to sell Arm to Nvidia. According to a report that was published by Bloomberg on Monday, the corporation is getting ready to lay off 12% to 15% of its workforce in both the United States and the United Kingdom.
According to Bloomberg, the CEO of Arm, Rene Haas, sent a message to the workforce in which he informed them of the impending layoffs, which could potentially affect up to one thousand Arm employees in the United States and the United Kingdom. The company is reducing its expenses and taking on fewer projects, and one of the ways it is doing this is by laying off employees.
Arm has admitted that it will be conducting layoffs in the near future but has not provided further details.
“Like any other firm, Arm is continually assessing its business strategy to ensure the company has the correct balance between opportunities and cost discipline,” a spokeswoman for Arm told CNET in an email. “Like any other company, Arm is continually reviewing its business plan.” “Regrettably, this approach may result in suggested redundancies across Arm’s staff in several locations across the world.”
As part of SoftBank’s ambitions to broaden its presence in the internet of things, the Japanese telecom corporation made the decision to purchase Arm in 2016 for a price of $32 billion. Arm is one of the most influential players in the industry due to the fact that its designs and technology are used by companies such as Apple, Samsung, and Qualcomm. These companies use Arm’s designs and technology to lay the groundwork for the processors that power billions of mobile phones around the world. The technology developed by the chipmaker can be found, for example, in the M1 chips manufactured by Apple and the AWS Graviton processors manufactured by Amazon.