Arm is preparing to lay off hundreds of employees after being forced to scrap a planned $40 billion acquisition by Nvidia.
According to Arm CEO Rene Hass, the total number of employees who will be laid off is between 12-15% of total Arm employees globally. Currently Arm is said to have as many as 6,500 employees worldwide, which means almost a thousand employees will be affected by layoffs.
"This is a tough time for everyone, so I want to explain why we are doing this. We need to be more disciplined about spending and where we have to invest," said Hass in a statement to The Telegraph.
"To stay competitive, we have to eliminate duplication of work because now we are one Arm; stop doing things that are not essential for future success and think about how to get the job done," he added.
The news of Arm's layoffs comes about a month after Softbank decided to cancel the sale of Arm to Nvidia due to opposition from regulators.
The $40 billion acquisition was first announced in late 2020, but was later scrapped. Now, Softbank plans to sell Arm shares to the public.
Simon Segars, the former CEO of Arm who led the British company from 2013 to February 2022, has previously warned that Arm's investment level would have to be lowered if its shares were to be sold to the public instead of being acquired by Nvidia.
The reason, according to The Telegraph, Arm has doubled the number of employees since it was bought by Softbank for USD 31 billion in September 2016.
"Like any business, Arm is constantly reviewing business plans to ensure the company has a balance between opportunity and cost discipline. Unfortunately this process includes reducing redundancy across Arm employees globally," explained Arm in a statement.