Arm China is laying off 14 of employees amid trade

Arm China is laying off 14% of employees amid trade wars and potential licensing issues

According to online sources, massive layoffs have taken place in China’s defense sector. According to the report, 90 to 95 people left Arm China, accounting for about 14% of the company’s total workforce.

    Image source: Getty Images

Image source: Getty Images

According to people familiar with the matter, the layoffs mainly affected R&D engineers. It is noted that some of Arm’s Chinese customers are concerned about these developments, which continue amid a trade war between the United States and China and may result in Arm technologies becoming unavailable to Chinese companies will be.

Late last year, the media wrote that Chinese IT giant Alibaba was denied access to Arm Neoverse’s powerful server cores because Arm believed the US and UK governments would block the delivery of such solutions to China. Chinese customers also worry that Arm could fundamentally change its licensing model.

Arm China distributes Arm’s intellectual property in China, which is why it receives royalties from local Arm customers. However, SoftBank, Arm’s parent company, sold 51% of the company’s shares back in 2018, so Arm China now effectively operates as an independent organization with a controlling stake in the hands of Chinese investors.

“Arm China is a separate company from Arm Ltd. While we cannot comment on their hiring decisions, we do not expect any difficulties in our continued strong business in China.”– commented on the news of the dismissal of employees of Arm China, the representative of Arm.

Over the past year, Arm has implemented redundancies around the world, with the company’s UK division being reduced by around 20%. Since then the company has had good financial results. Arm’s revenue rose 28% in the fourth quarter of last year compared to the same period last year. Earlier this month, Arm’s management also announced the company’s intention to complete the IPO and go public before the end of the current calendar year.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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