Chip giant Arm set to axe 15% of its staff after deal fails

UK computer chip designer Arm Holdings has said it plans to cut up to 15% of its workforce.

The redundancies have emerged just a month after the collapse of the firm's $40bn sale to US chipmaker Nvidia.

If the proposals go ahead most job losses would be in the UK and the US, the Cambridge-based company said.

Arm's chip designs are licensed to brands including Apple and Samsung and are used in most smart phones and other products around the world.

Arm employs close to 6,400 people worldwide. The company said in a statement: "Like any business, Arm is continually reviewing its business plan to ensure the company has the right balance between opportunities and cost discipline.

"Unfortunately, this process includes proposed redundancies across Arm's global workforce."

Millions of technology products rely on computer chips but there are not enough currently being produced to meet demand.

As sales of devices soared during the pandemic, stocks of chips plunged which has left manufacturers struggling to keep up with demand.

Arm's owner Softbank - the Japanese conglomerate which bought the UK company in 2016 for $32bn - had planned to sell the firm to Nvidia for $40bn.

However, last month SoftBank shelved the sale citing regulatory hurdles and said it would instead seek to list the company.

In the blow to the UK, Softbank said its would list Arm on the Nasdaq stock exchange in the US.