Arm to lay-off up to 1,000 workers as it preps for IPO
Processor licensor Arm Ltd. is set to lay off 12 to 15 percent of its staff – about 1,000 employees – as it prepares for an initial public offering of stock.
The CEO, Rene Hass, has sent 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 Corp. collapsed (see Analysis: Arm CEO replaced as ‘unwanted’ sale to Nvidia cancelled).
Email quoted
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 rather than be bloated.
Meanwhile Arm’s China minority-owned subsidiary is planning its own IPO (see Arm’s China subsidiary plans 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.
Related links and articles:
News articles:
Analysis: Arm CEO replaced as ‘unwanted’ sale to Nvidia cancelled
Arm’s China subsidiary plans its own IPO
Reports: ARM China makes independent move in autonomous driving
ARM China boss makes $180 million on single deal
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