Up 1,000 ARM employees in the US and the UK will be laid off, according The Telegraph and Bloomberg. Chief Executive Officer Rene Haas reportedly told staff in a memo that the Softbank-owned chipmaker is cutting between 12 to 15 percent of its workforce, with 1,000 being the high end of that range, as part of its efforts to curb spending. The company said in a statement:
"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."
Softbank was supposed to sell ARM to NVIDIA for a massive deal that was worth $40 billion based on the latter's stock prices in 2020. If the acquisition had gone through, it would've been the largest in the chip sector yet and would've been worth around $60 to $80 billion today. The deal collapsed completely in February, however, due to strong opposition by regulators around the world. Industry players, including ARM customers Qualcomm and Microsoft, also voiced their opposition against the deal, citing concerns that NVIDIA might prevent ARM from licensing its chip designs.
NVIDIA will pay Softbank a break fee of $1.25 billion for the failed purchase, and the Japanese conglomerate will proceed with its backup plan of taking ARM public. Neither of those is enough to keep things running as is, if the UK-based chipmaker is cutting jobs. Bloomberg says, though, that most of the job cuts won't affect the company's engineers. Despite the failed acquisition, NVIDIA plans to continue working closely with ARM and will continue to support the company as a licensee.