Arm plans to lay off 12-15% of workforce in the United States and UK
On February 8, 2022, Nvidia and SoftBank announced the termination of the previous transaction, and Nvidia officially abandoned the acquisition of Arm. Despite the best efforts of both Nvidia and SoftBank, significant regulatory challenges prevented the deal from closing, and both sides agreed to terminate the agreement. In the eyes of many, Nvidia has suffered a major setback on the way forward, but it may be Arm that has been hit even more.
According to Bloomberg, Arm’s new CEO Rene Haas said in a memo to employees that he would lay off about 12% to 15% of employees in the United States and the United Kingdom, involving nearly 1,000 jobs. Arm said in an official statement that it is constantly reviewing its business plan to ensure the right balance between opportunity and cost. Some analysts pointed out that Arm’s layoffs are to more effectively control costs and pave the way for the next IPO.
SoftBank believes that Arm’s technology and IP will continue to be the driving force behind the development of mobile computing and artificial intelligence, but more work needs to be done to get out of the current predicament.
