On Monday, local time, Arm said it plans to lay off 12%-15% of its workforce globally, mainly in Europe and the United States. Arm's decision was communicated in a memo to employees, but it did not specify which teams would be affected.

"Like any business, Arm is continually reviewing its business plans to ensure the company strikes the right balance between opportunity and cost," Arm said in a statement. "Unfortunately, this process includes proposals from Arm's global workforce. Layoffs."

Following the failed sale of Nvidia, Arm noted that most of the proposed losses would have ramifications in the U.K. and U.S.

In February of this year, due to the forced interference of the US Federal Trade Commission, Nvidia and Japan's SoftBank Group jointly announced that the two sides canceled the transaction on Arm. This merger, which was initially worth $40 billion, was later valued at more than $60 billion. In the end it became a bubble.

According to foreign media reports on the details of the transaction, if the acquisition is completed, Arm employees will share the $1.5 billion in acquisition expenses and receive a substantial retention bonus.

It is reported that after the failed acquisition, Nvidia paid SoftBank at least $1.25 billion in break-up fees.

However, this transaction is doomed to fail, not to mention that most of the regulators around the world are opposed to the merger, and even Arm's customers have repeatedly voiced their concerns about Arm being acquired. International giants including Qualcomm, Microsoft, Intel and Amazon have all spoken out directly and provided information to regulators around the world to express concerns about Arm's loss of autonomy. After all, Arm is one of the most important CPU IP authorizations in the world. Apple, Qualcomm, Samsung, Huawei, MediaTek and other companies all rely on Arm authorization.

Image source: Arm

On the issue of personnel turnover, the fact is that even if Nvidia can successfully acquire Arm, Arm's existing employees are not safe. According to foreign media reports, Nvidia refused to commit to increasing the number of Arm teams after the acquisition of Arm. And Simon Sigas, the former CEO of Arm who has left, said that once Nvidia completes the acquisition of Arm, the latter's headquarters will be moved to the United States, which will inevitably cause thousands of British Arm companies to lose their jobs.

Now that the acquisition has failed, Arm will not continue to develop as before, and change is inevitable. According to relevant reports from Japanese media, SoftBank Group’s next plan is to promote Arm’s listing, which is an important part of Arm’s further development.

In July 2016, after Japan's SoftBank Group acquired Arm for $32 billion in cash, the latter's revenue from 2017 to 2019 was $1.831 billion, $1.836 billion, and $1.898 billion, respectively, with minimal growth, becoming SoftBank's investment portfolio. One of the laggards. At that time, a senior industry analyst quoted 2019 data for relevant analysis. In 2019, 640 million CPUs using Arm were sold worldwide. On average, a CPU paid 16 cents in royalties to Arm, so it would take at least 60 years for SoftBank to recover. Book.

At the 2018 SoftBank shareholder meeting, the company also promised to complete the listing within five years, which is 2023. After the merger with Nvidia failed, SoftBank will restart Arm's listing plan, and in order to be able to successfully go public and attract investors' attention, Arm took the lead in laying off staff and slimming down.

Arm is gearing up for an initial public offering, people familiar with the matter say