back to article Restructure at Arm focused on 'non-engineering' roles

Arm today told The Reg its earlier restructuring ahead of its return to the stock market was focused on cutting "non-engineering" jobs. This is after we queried comments made this morning by Arm chief executive Rene Haas in the Financial Times, in which he indicated he was looking to use funds generated by the expected public …

COMMENTS

This topic is closed for new posts.
  1. Potemkine! Silver badge

    Road to hell

    Arm chief executive Rene Haas is looking to use funds generated by the expected IPO to expand the company, hiring more staff and potentially pursuing acquisitions.

    Then the goal will be to satisfy shareholders, and that will lead to short term views and lay-offs as soon as profits are not high enough.

    1. Charlie Clark Silver badge

      Re: Road to hell

      You mean they won't be put "saving kittens and dolphins" into the company's charter? I'm shocked, I tell you, shocked!

      1. sschuchart

        Re: Road to hell

        Oh, come on now. Even for capitalists, quarterly-only thinking has been detrimental to the long term business profitability.

        1. Yet Another Anonymous coward Silver badge

          Re: Road to hell

          Softbank own ARM, Softbank sell ARM, Softbank gets money. Not clear how this enables ARM to suddenly grow and hire more

          1. NeilPost Silver badge

            Re: Road to hell

            ESP. As reported they both want to sell it, yet retain control.

            1. Charlie Clark Silver badge

              Re: Road to hell

              Listing the company on an exchange is not the same as selling it: you normally choose how much equity you want to offer up and retaining a majority is common. It's almost always spun as raising money for the company listing, it rarely gets to see much of that. Given that the market is currently less frothy than it was a few months ago, SoftBank probably wants to raise some cash now and hope that it can raise more later. Some of the cash can be used to make the bride look better and keeping control is essential to be able to choose the timing for the next rights issue / delisting if the hoped for private equity angel comes along with suitcases full of dollares.

              1. Yet Another Anonymous coward Silver badge

                Re: Road to hell

                Yes but this isn't a startup IPOing to raise capital to expand into a real company. This is a hedge fund trying to offload its only valuable asset to claw back some money to fill the WeWork hole.

  2. Anonymous Coward
    Anonymous Coward

    The IPO is only there to make the Mr Haas richer and the other directors more money at the expense of staff who actually design cpu's which is way harder than anything the board does. Arm must be turning a profit so why no reinvest that to grow the company seems a better thing to do, but there I go again thinking logically rather than avarice

    1. Charlie Clark Silver badge

      The IPO is there to generate cashflow for SoftBank. The board will say and do whatever is necessary for this to happen.

  3. badflorist

    Last IT company that sold for the better?

    ... can't think of one right now.

  4. VoiceOfTruth

    UNITE

    -> The news had led to Unite, one of the UK's largest unions, calling on Arm's management to halt any such layoffs, saying that staff at the company are highly skilled technology workers and that the UK economy could not afford to lose those skills.

    Very well. Why doesn't UNITE get off its heavy buttocks, form a high tech company with those workers? Maybe, like many union leaders and politicians, UNITE can talk the talk but can't actually walk itself.

    I am not anti union.

    1. Dan 55 Silver badge

      Re: UNITE

      How could you be anti-union if it appears you don't even know what a union is for?

    2. 3arn0wl

      In other news...

      ... SiFive announced today that they are setting up stall in Cambridge. They join Imagination, Codasip and LowRisc as processor design companies in the city.

      I don't think UNITE needs to get its knickers in a twist about losing skilled technology workers.

      1. Yet Another Anonymous coward Silver badge

        Re: In other news...

        >I don't think UNITE needs to get its knickers in a twist about losing skilled technology workers.

        It isn't. It's worried that all the admin and ancillary staff will be offloaded and outsourced to some sub-minimum wage/immigrant staffing outfit.

        The managers need to say they are cutting staff to boost the stock price, but they don't want to lose any chip designers. Firstly because they need them, but also if they start making any highly skilled tech workers redundant then all the others run for the exits.

This topic is closed for new posts.

Other stories you might like

Biting the hand that feeds IT © 1998–2022