Arm Holdings, a British computer chip company, has announced intentions to slash up to 15% of its staff.
The layoffs come barely a month after the company’s $40 billion deal to US chipmaker Nvidia fell through.
If the suggestions are implemented, the majority of employment losses would occur in the United Kingdom and the United States, according to the Cambridge-based firm.
Most smart phones and other goods throughout the world employ Arm’s chip designs, which are licensed to manufacturers like Apple and Samsung.
Arm employs over 6,400 people across the world. “Like any business, Arm is always examining its business strategy to ensure the firm has the correct balance between potential and cost discipline,” the company said in a statement.
“Unfortunately, anticipated reductions across Arm’s global staff are part of this process.”
Computer chips are used in millions of technological devices, yet there aren’t enough being made to fulfill demand.
During the epidemic, gadget sales skyrocketed, but chip supply plummeted, leaving manufacturers unable to keep up with demand.
Softbank, the Japanese corporation that purchased Arm for $32 billion in 2016, had intended to sell the company to Nvidia for $40 billion.
SoftBank, on the other hand, put the sale on hold last month, citing regulatory issues, and announced that it would instead seek to float the firm.
Softbank said that it would list Arm on the Nasdaq stock exchange in the United States, dealing a blow to the UK.