In case you don’t know, NVIDIA was looking to purchase ARM from SoftBank for $40 billion. No one liked that idea because it would have given NIVIA too much control over the chip market. Thankfully, it fell through, and NVIDIA owed SoftBank $1.25 billion as a result. Now, ARM’s fate is up in the air at this point.
ARM will need to cut up to 1,000 jobs
But, one thing is clear: ARM will need to lighten the load a bit. According to Tech Radar, soon after this big-budget buyout went bust, the company had to look at the sort of positions it filled and which ones could be cut. There wasn’t an exact amount given, but we do know that it’s in the hundreds. ARM’s previous CEO, Simon Segars, stated if the deal did go through, spending will need to be reduced. Consequently, there could be as many as a thousand jobs axed, which is a pretty significant chunk of the overall company’s full staff. According to the report, out of the roughly 6,400 jobs in the company, up 15% of them will be cut. The company should, ostensibly, be in good shape after the job cuts, as it focused on redundancies when laying off employees. This means jobs that the positions should still be pretty much filled.
ARM is going public
However, ARM’s job cut isn’t only because of the abortive acquisition. The company is going to be entering a new stage over the next year. ARM’s CEO announced the cut in jobs and used classic PR speak. “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.” Those opportunities ahead of them he referred to deal with the fact that the company is going public. While NVIDIA was walking away from the deal, news broke that SoftBank wanted to make ARM public. So, a combination of the dead deal and the company going public led to the company’s cut in jobs. ARM is set to go public sometime over the next 12 months.
