ARM Will Cut 1,000 Jobs After Failed Acquisition by Nvidia
Summary
The reduction is part of an attempt by ARM to “stay competitive” and “remove duplication of work,” according to an email sent to staff by CEO Rene Haas and reviewed by The Daily Telegraph. “It’s essential that we focus on activities that will move our strategy forward at pace.” Just as important as the reduction itself is the context surrounding it: as we touched on last month, ARM was once slated to be acquired by GPU and SoC giant Nvidia for $66 billion before the deal failed for more reasons than one. Regulators in the US, UK, EU, Japan, and South Korea flagged that it could be problematic to allow one of ARM’s customers to absorb the company, while competitors expressed concern regarding Nvidia’s eventual size if the bid went through. The deal collapsed in early February, with Nvidia CEO Jensen Huang saying the company “could not give regulators the comfort they needed to approve” the acquisition. Former ARM CEO Simon Segars left his position shortly after the failed acquisition to allow Haas, the company’s former head of intellectual property, to step up to the plate.
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