Arm to slash 15% of workforce following failed Nvidia takeover
Arm is restructuring ahead of its IPOBy Shawn Knight 7 comments
In brief: Nvidia's deal to purchase chipmaker Arm was risky from the get go. When competition authorities pushed back, the two sides decided to walk away from the $40 billion acquisition. Where does that leave Arm and its employees ahead of an IPO? For some, the answer is "jobless."
The Guardian reports Arm is planning to cut up to 15 percent of its workforce. Most of the job cuts - totaling around 1,000 - will impact employees in the UK and US. The company is said to employ around 6,500 people worldwide, including roughly 3,000 folks in the UK alone.
Arm told the publication that like any business, it is continually reviewing its business plan to ensure it has the right balance between opportunities and cost discipline. "Unfortunately, this process includes proposed redundancies across Arm's global workforce," the company added.
Arm parent company SoftBank Group will receive a $1.25 billion breakup fee from Nvidia as a result of the deal falling through.
Mike Clancy, general secretary of prospect, said Arm is one of the most important providers of high-quality tech jobs in the UK.
"We always knew there was a risk once the sale to Nvidia fell through that the company would seek to restructure or cut costs. We urgently need leadership from government now to protect British jobs and British research and development spending," Clancy added.
When the acquisition collapsed, Arm vowed to move forward with an initial public offering within the fiscal year (ending March 31, 2023). Arm also appointed former Nvidia executive Rene Haas as its new chief executive officer.