Arm China cuts more than 100 jobs after a 96 per cent dive in profits last year amid tough chip market
- Chip design firm Arm China cut jobs from its high-performance computing and system-on-a-chip departments, people familiar with the matter said
- The cutbacks come after a tumultuous year for the company, which finally ousted its former CEO last year after he refused to leave in 2020
Departments losing staff include those for high-performance computing (HPC) and system-on-a-chip (SoC) designs, the people said, and most workers will be compensated according to how many years they have been with the company plus three months of pay.
The lay-offs come after net profits fell to US$3 million last year, from about US$70 million in 2021, in the largest drop since the joint venture was created in 2018, according to one of the people. Both people requested not to be named as they are not authorised to speak to news media.
Arm China did not immediately respond to an emailed request for comment on Friday.
UK-based Arm declined to comment on the joint venture’s personnel decisions, saying Arm China is a separate company. “We do not expect any disruption to our business in China, which continues to remain strong,” Arm said in a statement on Thursday.