British microchip designer Arm Holdings has announced plans to cut up to 15% of its workforce.
The layoffs come just a month after the collapse of the company’s $40 billion sale to US chipmaker Nvidia.
If the proposals go through, most jobs in the UK and US would be lost, the Cambridge-based company said.
Arm’s chip designs are licensed to brands such as Apple and Samsung and are used in most smartphones and other devices around the world.
Arm employs more than 6,000 people worldwide. The company said in a statement: “Like any company, Arm continually reviews its business plan to ensure the company has the right balance of opportunity and cost discipline.
“Unfortunately, this process involves planned layoffs among Arm’s global workforce.”
- UK chip firm’s sale collapses amid competition fears
- Armboss: We can do this alone
- ARM: Can the ‘crown jewel’ of British technology be protected?
Millions of technology products depend on computer chips, but not enough is currently being produced to meet demand.
As device sales soared during the pandemic, manufacturers have seen stocks of microchips drop, leading to a global shortage.
In February, SoftBank halted its blockbuster sale of Arm to Nvidia, citing regulatory hurdles, in favor of trying to take the company public. SoftBank acquired Arm in 2016.
The value of the proposed sale, which was contingent on Nvidia’s stock price, was originally priced at about $40 billion, but rose to about $80 billion with Nvidia’s stock price late last year.
Add Comment