ARM, Which Failed Nvidia Acquisition, Plans Up to 15% Workforce Layoffs

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] British semiconductor company ARM is reportedly planning to cut up to 15% of its total workforce to reduce costs and focus on core businesses as part of its preparation for an initial public offering (IPO), Bloomberg reported on the 14th (local time).

Bloomberg cited a memo recently sent to employees by newly appointed CEO Rene Haas last month, stating that ARM will lay off 12-15% of its employees in the UK and the US. Sources indicated that nearly 1,000 employees could be affected, but engineers are unlikely to be included in the layoffs.

Since the collapse of Nvidia's acquisition of ARM last month, CEO Haas has been preparing for the IPO. ARM stated, "As with any business, ARM continuously reviews its business plans to balance opportunities and costs," adding, "Unfortunately, this process includes layoffs of ARM's global employees."

Earlier, SoftBank declared last month that the sale of ARM had fallen through and announced plans to complete the IPO by the end of March next year. SoftBank acquired ARM in 2016 for $32 billion (approximately 40 trillion won) and currently holds 75% of the shares, with its subsidiary Vision Fund owning 25%.

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