Arm to cut hundreds of jobs after Nvidia deal falls through

Illustration by Alex Castro / The Verge

Arm was forced to abandon its $40 billion sale to Nvidia last month, and is now preparing to cut hundreds of employees from its global workforce. According to The Telegraph, the company's chief executive told staff on Monday that between 12 and 15 percent of the company's employees could be affected. If Arm has over 6,500 employees worldwide, this could translate to almost a thousand employees. The majority of roles will be in the UK and US.

This is going to be a tough time for everyone, so I want to be clear on why we are doing this. We need to think about how we get work done now that we are one Arm, and stop work that is no longer critical to our future success.

The news comes a little over a month after parent company Softbank said it was abandoning Arm's sale to Nvidia in the face of regulatory challenges. After abandoning the deal, Softbank said it planned to take Arm public to cash in on the company.

If Arm went public, its current investment levels wouldn't continue, as warned by the company's former CEO. Arm was bought by Softbank and wanted to double its workforce.

The company told The Telegraph that it reviews its business plan to make sure it has the right balance between opportunities and cost discipline.