ARM plans to lay off 1,000 staff
UK processor designer ARM is planning to lay off 12 to 15 percent of its staff, about 1,000 employees.
The news came from new CEO Rene Haas in an email to staff discussing the cuts, which has been seen and reported by the UK’s Daily Telegraph. Haas was appointed to replace Simon Segars when SoftBank Group’s proposed $66 billion sale of ARM to Nvidia.
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The Telegraph quotes Haas as saying in his email: “To stay competitive, we need to remove duplication of work now that we are one Arm; stop work that is no longer critical to our future success; and think about how we get work done.” Haas added ARM needs “to be more disciplined about our costs and where we’re investing.”
The IPO is expected to go through by March 2023 and clearly the prospectus will read better if ARM can be seen to have leaner running costs.
Meanwhile ARM’s China minority-owned subsidiary is planning its own IPO. ARM China is a problem that has been left for Haas to sort out. It stems from attempts to sack the subsidiary’s CEO Allen Wu, who has simply refused to leave his post.
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