After a very publicized purchase bid that ultimately ended up failing, Arm is currently undergoing a post-Nvidia reorganization. We already knew that its parent company SoftBank went public with the news to receive a $1.25B break-up fee from its former prospective buyer. In the meantime, Arm plans to cut a significant amount of its workforce.

The company is cutting up to 1,000 positions worldwide, primarily in the US and the UK (via The Guardian). Given that the company employs around 6,500 people across the globe — and 3,000 in the UK alone — 1,000 represents roughly 15% of its global workforce, a significant loss. Arm delivered the following statement:

Like any business, Arm is continually reviewing its business plan to ensure the company has the right balance between opportunities and cost discipline. Unfortunately, this process includes proposed redundancies across Arm’s global workforce.

The tech world was shaken up when Nvidia announced that it would be buying Arm from SoftBank in a $40B deal (increased to $80B after a rise in Nvidia's stock price). The massive buyout, which would've been the largest in the semiconductor industry if it materialized, was subject to intense scrutiny from competitors, global regulatory agencies, and governments alike. Ultimately, there was too much going on, and the deal crashed and burned, with Nvidia staying as a close partner key to its chip-making business — and retaining a 20-year license.

Reactions to Arm's new move — likely made to cut costs after the failed change of hands — were almost immediate. Mike Clancy, general secretary of the Prospect trade union, highlighted that Arm is "one of the most important providers of high-quality tech jobs in the UK," and that this news would "send shockwaves to thousands of Arm employees worried about their jobs."

We'll have to see where things are headed, especially after it goes public, which is expected to happen within the fiscal year ending on March 31st, 2023.