Chip designer Arm said that it plans to lay off 12-15 percent of its staff, putting 1,000 jobs at risk.
The company is making the layoffs after Nvidia’s proposed $40 billion acquisition of Arm fell apart. Japanese parent company SoftBank is preparing to take the company public to raise money.
"Like any business, Arm is continually reviewing its business plan to ensure the company has the right balance between opportunities and cost discipline," the company said in a statement.
"Unfortunately, this process includes proposed redundancies across Arm’s global workforce."
Arm employs more than 6,500 people worldwide, including 3,000 in the UK. In an email seen by The Telegraph, Arm's new CEO Rene Haas told staff that most of the losses would be in the UK and US, saying the company had to be more “disciplined about costs.”
He added: “This is going to be a tough time for everyone, so I want to be clear on why we are doing this.
“To be successful in the opportunities we have ahead of us, we need to be more disciplined about our costs and where we’re investing. 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. It’s essential that we focus on activities that will move our strategy forward at pace.”
