ARM has revealed that it is considering job cuts of up to 1000 people.
🟦ARM announces mass employee restructuring
Arm CEO Rene Haas has notified employees of the cutback. The redundancies will be carried out for UK and US operations and will affect 12~15% of the global workforce. The company employs 4400,6400 people in the UK and 15,1000 worldwide, with a focus on its Cambridge headquarters. An impact of <>% means that about <>,<> people will be subject to restructuring. Key ARM executives have already resigned.
Due to British opposition
Arm, a U.K. semiconductor design subsidiary owned by SoftBank, announced in September 2020 that it would be sold to Nvidia for $9 billion. Nvidia had planned to invest at least $400 million in supercomputers in the UK and make an additional investment in ARM. However, the Competitive Markets Authority (CMA) in the UK was reluctant and SoftBank abandoned the sale.
🟦Improving profitability in preparation for an IPO
Softft Bank plans to IPO arm again by the end of fiscal 2022. Ahead of going public, we aim to increase profitability by reducing our workforce.
Profit is flat
ARM’s sales have been almost flat for 18-4 years since ‘5, and they were told that if Nvidia didn’t acquire them, they wouldn’t be able to sustain their investments. With the increase in earnings in fiscal 2021, we decided it would be difficult to continue investing. In fact, after SoftBank acquired ARM in 2016, it doubled its workforce in five years, which has increased expenses.
Immediately after the change of CEO
ARM restructured in February 2022, with Rene Haas promoted to CEO and former CEO Simon Segers as advisor. It was a restructuring announcement that had just been established with a new management structure.
🟦Summary
Arm announces massive employee restructuring to improve profitability ahead of IPO
The UK had serious competitive concerns and opposed Nvidia’s acquisition of ARM. As a result, I lost my job in the UK.
