Arm Lays Off Workers After Blockade of Contract With Nvidia

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The company is owned by SoftBank Arm employs around 6,400 people worldwide, around half of whom are in the UK. "Like any business, Arm is constantly reviewing its business plan to ensure the company has the right balance between opportunity and cost discipline. Unfortunately, this process includes proposed redundancies across Arm's global workforce. "If the proposals are implemented, we anticipate that around 12-15 percent of people in Arm will be affected globally," said an Arm spokesperson. While Arm 's headquarters is in Cambridge, England, the company is owned by the Japanese technology giant SoftBank , which paid about $32 billion for the company in 2016. SoftBank announced in September 2020 that it planned to sell Arm to US chip giant Nvidia for $40 billion, but the deal was scrapped in February after a period of intense scrutiny by competition regulators.

Read also NVIDIA brings GeForce RTX 40 graphics cards to laptops Regulators had a few objections, but the main issue in the deal was over access to Arm's innovative chip design. Arm licenses its "architecture" to hundreds of companies around the world. Apple uses them Latvia Phone Number List in iPhones and iPads, Amazon uses them in Kindles , and automakers use them in vehicles. If Nvidia could stop other companies from using Arm's chip design in their semiconductors, the implications could be huge, according to analysts. Critics of the deal have also suggested that Nvidia could change Arm's operations once it takes ownership of the company. However, Nvidia has repeatedly emphasized that it wants to invest in Arm. Arm is important to Great Britain Former Arm CEO Simon Segars said last July that the company may have to lay off workers if the Nvidia deal is blocked.



SoftBank now plans to take the Arm public with Nvidia deal off the table. Masaioshi Son, CEO of SoftBank , said in February that the company will most likely be listed on the New York Nasdaq stock exchange. However, pressure is growing on SoftBank to dual-list the company. Read also: Nvidia and Microsoft 'massive' AI computer in the cloud Julian Rowe, general partner at tech investment firm Latitude, said the UK government should do all it can to ensure domestically successful tech companies such as Arm are not sold too soon and too cheaply to international buyers. "History will tell you that the Nasdaq or the NYSE might be a more natural home for a chip designer like Arm, but that understates the extent to which Arm is probably the UK's least-known tech success story and the special position it can occupy on the list.