Arm will reportedly lay off 15% of its workers following a failed Nvidia acquisition

Enrique, 15 March 2022

Last month, Nvidia officially confirmed that its acquisition of Arm was being terminated due to complications with convincing regulators that the merger would not affect Arm’s free licensing model. Softbank (Japanese investment company and current owner of Arm) is on the hook for a $1.25 billion fee.

Arm will reportedly lay off 15% of its workers following a failed Nvidia acquisition

Following the failed acquisition, The Telegraph reports that Arm’s new CEO Rene Haas told staff on Monday that the company faces redundancies that “could affect up to 1,000 employees”. Arm employs 6,400 staff and 3,500 of them are in the UK.

Haas explains to staff that most layoffs will be in the UK and US. The following is an excerpt from an email written by Haas, as seen by The Telegraph.

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.

Last month, Softbank confirmed that it planned to make Arm public in attempt to recuperate some of the losses from the failed acquisition. These layoffs are part of that plan to lower costs, thus maximizing appeal to investors ahead of its initial public offering.



Reader comments

  • Anonymous
  • 16 Mar 2022
  • M}3

ARM is only designing the architecture. I'd say biggest profits are on side of Mediatek, Qualcomm, Apple, Samsung, basically everyone that's actually producing said chipsets. If Intel was only selling x86 licenses, I don't think they&#...

I'll explain Because of their anticipation of acquisitions they made certain forecast or even budgeted on making returns after said deal is to be finalized They probably even paused on certain operations Now the acquisition wasn&...

  • ae86
  • 16 Mar 2022
  • vaS

Business is truly odd. Despite being a business student it still weird me how a company that controls a huge market share can still generate losses

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