The deal with NVIDIA fell through, forcing Arm to look for other ways to return capital from Japanese firm SoftBank to its owners. Arm’s return to the stock market is seen as one of the few viable alternatives, but UK sources say the chip designer will be forced to lay off up to 15% of its workforce.
Involved Bloomberg British media releases refer to an internal letter from Arm CEO Rene Haas, who has worked at the British company for almost nine years and is the company’s fourth chief executive officer. In an internal mailing to Arm employees, he said that costs needed to be cut by reducing the workforce by about a thousand people. It stresses that the cuts will have little impact on engineering positions but will spread outside the UK.
When it became known that NVIDIA had finally scrapped the idea of buying Arm, experts expressed their confidence in SoftBank’s desire to return the company’s shares to the stock exchange as soon as possible, given the cyclical situation in the form of investor interest in high-tech assets favored a successful placement. How such prospects will be evaluated in the new macroeconomic conditions is difficult to say, but it is already clear that Arm will have to make sacrifices. Note that concern over the fate of the company’s British employees was one of the factors working against the deal with NVIDIA, although the latter assured opponents in every possible way that it would not only keep the development team in Cambridge, but also expand it would it.