1,000 Arm employees could lose their jobs following failed Nvidia takeover

UK chip designer says 12-15 per cent of its workforce could face redundancy as it prepares to go public

UK chip maker Arm is proposing to cut up to 15 per cent of its workforce following last month's collapse of a takeover of the business by American giant Nvidia.

The SoftBank-owned company's takeover by Nvidia was first agreed back in August 2020 for $40bn but fell through due to the "significant regulatory challenges" the deal faced.

SoftBank is now planning on taking the company public on the NASDAQ exchange and had previously warned that an IPO could lead to job cuts.

The Cambridge-based business employs around 6,400 people worldwide - with up to around 1,000 of those now potentially losing their jobs.

"Like any business, Arm is continually reviewing its business plan to ensure the company has the right balance between opportunities and cost discipline," the company said in a statement.

"Unfortunately, this process includes proposed redundancies across Arm's global workforce.

"If the proposals go ahead, we anticipate that around 12-15 per cent of people in Arm would be affected globally."

Most of the proposed job cuts would be in the US and the UK, Arm added.

Arm's chip designs are licensed to companies including Apple, Samsung and Amazon, and are used in the majority of smartphones worldwide.

The Nvidia takeover was subject to scrutiny across the globe - including an in-depth investigation launched by the UK government.

Prior to the collapse of the deal, Arm and Nvidia said that an IPO for the chip designer had been previously considered but claimed capital markets "would expect Arm to make significant strategic changes, including cutting costs to maximise Arm's value".