Arm to cut almost one thousand jobs after their deal with Nvidia deal fell through.
The Cambridge-based software design company - which was acquired by SoftBank back in 2016 and designs the microchips used in billions of electronic devices around the globe - was initially set to have been bought by Nvidia in a deal worth $40 billion but it was called off back in February and now the company are reportedly set to lose up to 15% of their 6,500 staff.
Chief executive Rene Haas told Reuters: "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."
The Arm boss - who was appointed to the top role at the company only one month ago - told staff in an email obtained by The Telegraph that while the move was going to be "tough" for everyone, it is necessary in order to be "successful" for forthcoming opportunities.
The email read: "This is going to be a tough time for everyone, so I want to be clear on why we are doing this. To be successful in the opportunities we have ahead of us, 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. It’s essential that we focus on activities that will move our strategy forward at pace. "
Since the collapse of the blockbuster sale, SoftBank are "likely" to float Arm back onto the stock market by 2023.
SoftBank CEO Masayoshi Son said: The firm will likely be publicly listed on the tech-focused Nasdaq stock market within the fiscal year ending March 31, 2023."
