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 devices around the world.

Arm employs more than 6,000 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 while

In February, SoftBank shelved its blockbuster sale of Arm to Nvidia citing regulatory hurdles and would instead seek to list the company. SoftBank had acquired Arm in 2016.

The value of the proposed sale, which depended on Nvidia's stock price, was originally pegged at about $40bn but rose with Nvidia's stock price to about $80bn late last year.