Arm lays off over 70 engineers in China, relocating roles
ARM Holdings has recently laid off over 70 software engineers in China though it will relocate some of the roles outside of the Asian nation, according to sources with knowledge of the move.
The British firm’s actions mirrored those of major chip companies including Qualcomm that have cut back on the global staffing level earlier this year as the semiconductor industry faces a downturn due to lacklustre demand for electronics. In November, Arm gave a disappointing sales forecast amid a slump in smartphone sales.
About 15 of the staff whose positions are being eliminated will be offered different roles working on China-related projects, according to one of the sources, who declined to be identified discussing private matters.
The jobs being terminated are currently filled by contract software engineers who have worked on projects that span Arm’s business around the world, according to another one of the sources.
“In order to ensure that the China Software Ecosystem can fully maximise the benefits of Arm performance and features, Arm is restructuring its China software engineering resources to focus on direct support for local developers,” the Cambridge, UK-based company said.
China’s contribution to Arm’s global sales fell to about 20 per cent from 25 per cent as the rest of the world grew much faster, chief financial officer Jason Child told analysts in November.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The SoftBank Group-backed firm has been impacted by restrictions Washington has imposed on technology exports to Chinese companies as Arm has developed some of its proprietary designs, widely used by mobile devices, in the US.
Arm is still recovering from the turmoil of an extended dispute with the ousted head of Arm China, a joint venture owned by SoftBank and a group of Chinese investors.
Former Arm China chief executive officer Allen Wu had refused to leave his post after being dismissed and it took investors years to retake control.
Arm China acts as the sales office for the British chip designer in the largest market for semiconductors. Earlier this year, the Chinese entity itself let go over 100 employees, most of them working in the research and development unit to create new chip technology for the local market, the sources said.
Arm has outsourced the work of supporting its Chinese customers to Arm China through a division called global service, which had about 200 employees at one point. It is the employees at that department that will be let go or relocated, according to one of the sources. Arm China did not immediately respond to a request seeking comment. BLOOMBERG
Share with us your feedback on BT's products and services
