Following the failure of its acquisition of Nvidia, Arm is expected to lay off 15% of its workforce

After difficulties in persuading regulators that the transaction would not damage Arm‘s open licensing approach, Nvidia stated earlier this month that its acquisition of Arm had been cancelled. It will cost Softbank (a Japanese investment firm and current Arm owner) $1.25 billion to acquire Arm.

According to The Telegraph, Arm’s new CEO Rene Haas told employees on Monday that the business faces layoffs that “may affect up to 1,000 employees” as a result of the failed acquisition. 3,500 of Arm’s 6,400 employees work in the United Kingdom.

Haas informs employees that the majority of layoffs will occur in the United Kingdom and the United States. Emails written by Haas, as seen by The Telegraph, include the following snippet.

This is going to be a tough time for everyone, so I want to be clear on why we are doing this. ”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 […] To Stay Competitive, we need to remove duplication of work now that we are one Arm: stop work that is no longer critical to our future success; and think about how we get work done. It’s essential that we focus on activities that will move our strategy forward at pace.

Softbank acknowledged last month that it planned to go public with Arm in an effort to recoup some of the losses from the unsuccessful acquisition. Softbank confirmed this last month. These layoffs are part of the company’s strategy to reduce costs, which will make it more attractive to investors prior to its IPO.