Arm To Cut 1,000 Jobs After Nvidia Deal Collapses

(RTTNews) - British chip designer Arm Plc has plans to cut up to 1,000 jobs or about 15 percent of its workforce after its $40 billion sale to Nvidia collapsed last month, said reports.

According to reports, the company's chief executive Rene Haas told employees on Monday that around 12-15 percent of the workforce could be affected. This could mean that around 1,000 employees as the company has more than 6,500 employees worldwide. The company said that most of its workforce in US and UK would be laid off.

Haas said about the layoffs, "This is going to be a tough time for everyone, so I want to be clear on why we are doing this. We need to be more disciplined about our costs and where we're investing. To stay competitive, we need to remove duplication of work now that we are one Arm; stop work that is no longer critical to our future success; and think about how we get work done."

The news follows a month after Arm's parent company Softbank said that it was not selling the company to Nvidia in the light of "significant regulatory challenges." The $40 billion deal was first announced in late 2020, but following Nvidia's rise in stock price, the deal value rose to around $80 billion last year, according to reports. After the deal fell through, Softbank said that it would make Arm public to cash in on the company.

Arm's former CEO, Simon Segars, who led the company between 2013 and February 2022, said that the company's present investment levels would not go on for long if it went public rather than being acquired by Nvidia. According to reports, after it was taken over by Softbank, Arm had doubled its employees.