British chip designer Arm is cutting up to 15% of its workforce, just a month after a $40 billion takeover from chipmaker Nvidia collapsed.
Arm CEO Rene Haas, who only joined the company in February this year, told staff on Monday that between 12% to 15% of staff will be made redundant as a result of the cuts, according to an internal memo seen by the Daily Telegraph.
Arm employs 6,400 people worldwide, meaning between 768 and 960 jobs could be cut, primarily to UK- and US-based employees. The cuts won’t impact employees in engineering roles.
The UK-founded company designs the microchips found in billions of electronic devices, including Apple and Samsung smartphones. It was bought by the Japanese conglomerate SoftBank in 2016 for £23.4 billion.
The firm is now planning to go public after its takeover by Nvidia collapsed amidst ongoing regulatory pressure, including from the UK’s Competition and Markets Authority, and the US Federal Trade Commission.
“Like any business, Arm is continually reviewing its business plan to ensure the company has the right balance between opportunities and cost discipline. Unfortunately, this process includes proposed redundancies across Arm’s global workforce,” an Arm spokesperson said.
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