Up to 1,000 job cuts at SoftBank's Arm after failed $40 billion Nvidia deal.

• The U.K. tech sector's crown jewel, Arm, has approximately 6,400 employees globally, with half of them based in the U.K.
• The company, headquartered in Cambridge, England, is owned by Japanese tech giant SoftBank.
• If the Nvidia deal is blocked, Arm CEO Simon Segars stated in an interview with The Telegraph last July that the company may have to consider cutting jobs.

Arm, a British chip designer, is planning to lay off up to 1,000 employees, or 15% of its workforce, following the collapse of its $40 billion deal with SoftBank.

The U.K. tech sector's crown jewel, Arm, has a global workforce of approximately 6,400 employees, with about half of them based in the U.K.

An Arm spokesperson stated on CNBC Tuesday that the company is always evaluating its business plan to maintain a proper equilibrium between opportunities and cost control.

Unfortunately, Arm's global workforce will have proposed redundancies in the process.

The addition states that approximately 12-15% of individuals worldwide would be impacted by the proposals in Arm.

In 2016, Japanese tech giant acquired Arm, a company headquartered in Cambridge, England, for approximately $32 billion.

In September 2020, SoftBank revealed its plan to sell Arm to a U.S. chip giant for $40 billion. However, the deal was abandoned in February due to intense scrutiny from competition regulators in several countries, including the U.S., EU, China, and the U.K.

The main issue with the deal was access to Arm's innovative chip designs, while opponents had several other concerns.

Nvidia's "architecture" is used by hundreds of companies worldwide in iPhones, iPads, Kindles, and vehicles. If Nvidia stopped other companies from using its chip designs in their semiconductors, the implications could have been significant, according to analysts.

While some critics questioned whether Nvidia would cut jobs at Arm after acquiring the company, Nvidia emphasized its intention to invest in the company.

If the Nvidia deal is blocked, Arm CEO Simon Segars stated in an interview with The Telegraph last July that the company may have to consider cutting jobs.

SoftBank has decided to withdraw its plans for taking Arm public, as previously announced by CEO Masayoshi Son in February.

However, pressure is mounting on SoftBank to dual-list the company.

Julian Rowe, a general partner at tech investment firm Latitude, advised CNBC that the U.K. government should take measures to prevent the premature and inexpensive sale of successful homegrown tech businesses like Arm to international acquirers or choose to list their valuable holdings abroad.

Rowe stated that while it may seem more natural for a chip designer like Arm to list on Nasdaq or NYSE, this underestimates the company's success in the U.K. tech industry and its potential to occupy a unique position through a London listing.

The U.K. high growth tech scene could adopt it as a standard bearer.