According to the latest report, British chip company ARM revealed this week that it plans to lay off 12% to 15% of its workforce worldwide, up to 1,000 people.
ARM said most of the job cuts would take place in the U.K. and U.S., but did not provide specific numbers for job cuts in individual countries. “Like any other company, ARM continues to evaluate business plans to ensure the company strikes the right balance between opportunity and cost interest rates,” the company said in the announcement.
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Prior to this, Nvidia announced that it had abandoned its $40 billion acquisition of ARM. Arm’s owners SoftBank Group Corp and Nvidia announced they were abandoning the deal after regulators in Europe and the U.S. launched investigations last month. The U.S. Federal Trade Commission (FTC) even launched legal action to block the deal.
Moreover, SoftBank’s deal to sell Arm to Nvidia fell through after more than a year of review, and the two sides have agreed to terminate the agreement on February 8, 2022. Additionally, under the terms of the agreement, the $1.25 billion deposit is non-refundable. Such amounts will therefore be recognized as profit for the fiscal year ending March 31, 2022.
Under the terms of the agreement, SoftBank will retain the $1.25 billion upfront paid by Nvidia, which will be recorded as a profit in the fourth quarter, while Nvidia will retain its 20-year Arm license.
