UK chipmaker Arm to cut up to 1,000 jobs after $40bn sale collapses

Arm is planning to cut up to 15% of its workforce, the UK computer chipmaker has said, just over a month after the collapse of its $40bn (£30bn) sale to its US rival Nvidia.

The Cambridge-based company said most of the job losses, totalling up to about 1,000 roles, would be in the UK and the US. Arm employs more than 6,500 people worldwide, including 3,000 in the UK.

In February, SoftBank shelved its blockbuster sale of Arm to Nvidia, citing regulatory hurdles, and said it would instead seek to list the company. SoftBank had acquired Arm in 2016.

The deal, which would have been the largest in the semiconductor industry, had become mired in red tape on both sides of the Atlantic and in China. It had also faced fierce opposition from players within the industry since it was announced in September 2020.

SoftBank said at the time it would revert to its backup plan of an initial public offering to cash in on Arm, and was to receive a $1.25bn break-up fee from Nvidia.