The acquisition of Arm by Nvidia fell through following regulatory hurdles, and now the company has to make some tough choices.
British chip designer Arm revealed earlier today that it is planning to cut as many as 1,000 jobs in a bid to ensure it continues to operate.
This latest development comes after the company’s proposed acquisition by American chip manufacturer Nvidia fell through.
British regulatory agencies were against the deal as they believed it would give Nvidia too much power in the semiconductor market, which would reduce the competitiveness and quality of chips being manufactured in the long run.
An Arm spokesperson told CNBC earlier today that the company currently employs 6,400 people globally. However, the company has to cut more than a thousand jobs in a bid to keep the right balance. The spokesperson said;
“Like any business, Arm is continually reviewing its business plan to ensure the company has the right balance between opportunities and cost discipline. Unfortunately, this process includes proposed redundancies across Arm’s global workforce. If the proposals go ahead, we anticipate that around 12-15% percent of people in Arm would be affected globally.”
Arm is based in Cambridge, the United Kingdom. However, the company is owned by the Japanese financial giant SoftBank, which acquired the semiconductor designer for $32 billion in 2016.
SoftBank had agreed to sell Arm to Nvidia, but the objection from UK’s antitrust agency put the deal in jeopardy.
Arm is one of the leading semiconductor designers globally, and the regulatory agencies didn’t want the acquisition to affect the global chip market.
The company designs chips used by some of the world-leading tech companies, including Apple for its iPad, Amazon for its Kindles, and vehicle manufacturers in their cars.