Tuesday, March 15th 2022
Arm Considering Making 15 Percent of its Workforce Redundant
After its US$40 billion deal to sell Arm to NVIDIA fell through, it looks like SoftBank is getting ready to tighten the belt over at Arm, to make the company more attractive in time for the planned stock market re-introduction. Arm is said to be looking at making up to 15 percent of its workforce redundant, which is quite a lot of people when you consider that Arm employs some 6,500 people globally. As such, as many as 1,000 people, mainly in the UK and US, are likely to be getting a redundancy notice in the coming months.
At this point in time, it's unclear which divisions at Arm will be the most affected. The official statement from Arm so far, doesn't give any hints. "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." With Intel's planned expansion in Europe, there will hopefully be a chance for some of Arm's soon to be former employees to find a job at the competitor.
Source:
the BBC
At this point in time, it's unclear which divisions at Arm will be the most affected. The official statement from Arm so far, doesn't give any hints. "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." With Intel's planned expansion in Europe, there will hopefully be a chance for some of Arm's soon to be former employees to find a job at the competitor.
46 Comments on Arm Considering Making 15 Percent of its Workforce Redundant
New term for pink slip/ laid off/ fired/ bye bye/...
Maybe dumb politicians can be scared by such announcements
well i'm confident that those Regulators who strived to block the nVIDIA/ARM deal ,they will also :rolleyes: .. "strive" to find those people a new job ,so sad , things could have been totally different for those people:( with nVIDIA's billions thrown at ARM R&D.
--P.S. :Unlike ARM's :(employees , ATi 's employees had been more fortunate since no Regulators :shadedshu:opposed -back then- AMD from gaining control of both the CPU I.P. & GPU I.P. when they allowed them to buy-out ATi and use ATi's I.P. for their own benefit
(unlike nVIDIA who would keep the licensing business model for the ARM I.P. )
Oh well...
Btw... I understand it's all about keeping the margins high and showing good numbers when going public. But it still sucks.
Edit: Softbank market cap is USD 65B and they have investments in a gazillion other companies
Seems a lot like big companies
To many managers and not enough worker bees
Being dismissed doesn't include that option in many cases, as that often means you didn't meet the requirements for redundancy or you were fired.
Also, getting a redundancy notice doesn't mean you'll automatically lose your job, you could also be placed in a different role within the company, they just don't need your services in your current position, although that seems unlikely in this case.
As sad as it is, that's how companies operate - when they need workfore, they hire it; when they don't, they fire it.
Maybe nvidia will change their mind now that they don't have to be the bad guys laying off 15% workforce.
I've been thru a similar 'redundancy' (a corporate takeover really) a long time ago, its a very stressful time because there is that risk of losing your job. Never did find out how many got the boot.
How? I mean you'd have to be blind, stupid and oblivious all at the same time for that. And even if you are... IT is in high demand everywhere and code is code. Heck they're even pulling people from other sectors into IT right now. Actively, as in, companies paying your college/courses to go do it.
This is an utter non issue. ARM is too big to fail.. and Softbank is making a short term mistake with long term consequences. Everyone is struggling to keep their personnel on board. They probably won't get em back.
If there's one thing the world of finance is good at, it is ruining something good because it wasn't showing sufficient growth.