"'Big Deal in Focus' ARM Cuts Workforce Significantly in UK... Layoffs and Resignations Continue"

[Asia Economy Reporter Jeong Hyunjin] Reports emerged on the 3rd (local time) that ARM, a UK semiconductor intellectual property (IP) company, where SoftBank's Masayoshi Son is expected to visit Korea to discuss a partnership with Samsung Electronics Vice Chairman Lee Jae-yong, is experiencing simultaneous layoffs and resignations, significantly reducing its workforce. Over the past year, the number of employees in the UK has decreased by 40%.

According to major foreign media, ARM's number of employees in the UK was counted at 2,800 in September this year. Compared to September last year, when it exceeded 3,500, more than 700 jobs have disappeared. When SoftBank acquired ARM in 2016, it promised to more than double the number of employees in the UK (1,770 at the time) within five years. Since then, it had significantly expanded jobs in the UK until September last year.

However, the situation has changed. The planned sale to Nvidia by SoftBank fell through, and market conditions have worsened significantly this year. ARM's total number of employees, which was 6,950 in September last year, has decreased by about 18% this year. Earlier, in March, ARM sent a memo to employees announcing plans to lay off 12-15% of staff in the UK and the US. Foreign media reported that the largest proportion of laid-off employees were in the UK.

However, foreign media explained that this reduction in staff was not solely due to layoffs. SoftBank is considering various options regarding ARM. It is reported that Masayoshi Son will visit Korea this week to meet with Vice Chairman Lee and other domestic business figures to explore intentions regarding the acquisition of ARM. SoftBank is also planning to list ARM on the New York Stock Exchange early next year. Foreign media reported that resignations continue amid these developments.

A former ARM employee told foreign media that the situation worsened as many employees, feeling uneasy about the company's uncertain future while management refocused on the business, began leaving. Another former employee said many staff are very confused and disheartened amid the uncertainty over whether the company will be listed or sold.

ARM explained that the current turnover rate is at the industry average level. The company stated, "This is a result of the post-pandemic impact and the 'Great Resignation' across technology companies in general," adding, "We continue to hire and invest in talented engineers, focusing on the compute product roadmap that forms the partner ecosystem to build ARM's future."

This content was produced with the assistance of AI translation services.