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UK chipmaker Arm to cut up to 15% of staff after Nvidia deal collapse

Arm chips are found in many consumer electronic devices, including iPhones.
Arm chips are found in many consumer electronic devices, including iPhones.   -   Copyright  AP Photo/Richard Drew, File
By Euronews  with Reuters

UK chipmaker Arm said on Monday it plans to cut up to 15 per cent of its workforce, just over a month after the collapse of the firm's $40 billion sale (€36 billion) to US giant Nvidia Corp.

Most of the job losses would be in the UK and the United States, the Cambridge-based company said. 

Arm employs close to 6,400 people worldwide.

"Like any business, Arm is continually reviewing its business plan to ensure the company has the right balance between opportunities and cost discipline," a spokesperson for Arm told Euronews Next in an emailed statement.

"Unfortunately, this process includes proposed redundancies across Arm's global workforce," the company added.

The world has been facing a shortage of computer chips ever since sales of electronic devices soared during the COVID-19 pandemic. 

Arm's owner, the Japanese conglomerate Softbank, had planned to sell the firm to Nvidia. But in February, it called off the sale, citing regulatory hurdles and saying it would instead seek to list the company. 

The value of the proposed sale, which depended on Nvidia's stock price, was originally pegged at about €36 billion but rose with Nvidia's stock price to about €73 billion late last year.