SoftBank Group-owned chip designer Arm detailed plans to slash its workforce by up to 15 per cent following a failed buyout by US-based Nvidia, BBC News reported.
UK-based Arm has about 6,400 employees worldwide. It reportedly stated the redundancies would mostly be in the UK and US.
BBC News reported Arm explained it continually reviews 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”.
SoftBank and Nvidia pulled the plug on the proposed tie-up in early February due to regulatory challenges. Arm said at the time it started preparing for a public offering in its fiscal year ending 31 March 2023.
The first fallout after the deal collapsed was the departure of CEO Simon Segars, who was replaced by Rene Haas, president of Arm’s intellectual property group.
Nvidia’s buyout was originally valued at $40 billion, but soared to around $70 billion as its share price rose because the chipmaker planned to use its stock as currency to finance part of the purchase.Subscribe to our daily newsletter Back