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 …
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.
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.
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
-> 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.
>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.
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