Arm recently carried out a round of layoffs in Chinese mainland, laying off more than 70 software engineers and plans to move some of its positions outside of China. The layoffs appear to be an adjustment to the challenges facing the semiconductor industry as a whole, echoing an earlier wave of global layoffs at chipmakers like Qualcomm, largely due to a downturn in demand for electronics. It is reported that Anmou's layoff decision was also affected by the slowdown in smartphone sales.
According to Baineng Yunxin Electronic Components**, sources revealed that about 15 people are expected to be transferred to other positions related to the Chinese business in this layoff plan. At the same time, the redundant positions are currently being filled by contract software engineers who have previously worked on ARM projects around the world.
In a Cambridge, UK-based statement, ARM said it was overhauling its software engineering resources in China to ensure that the country's software ecosystem is fully performing and distinctive, while focusing on providing direct support to local developers. Finance Chief Justice Jason Child told analysts in November that China's share of global revenue had fallen from 25 percent to 20 percent as the rest of the world grew more rapidly.
The layoffs were also hit by U.S. export controls imposed on China, as some of Ammo's patented designs were developed in the United States. Previously, arm China, a joint venture between SoftBank, the parent company of Arm, and Chinese investors has experienced a high-level turmoil and is gradually recovering. ARM Technology is the sales office in Chinese mainland's largest semiconductor market, with more than 100 employees, mainly engaged in research and development, and is committed to creating new chip technologies for the Chinese market.
In addition, Arm outsources its customer support work in Chinese mainland to Arm Technology through a division called Global Services. According to people familiar with the matter, employees in this division will face layoffs or be transferred to other business units. So far, ARM has not provided a detailed response to the layoffs.
Overall, ARM's layoffs in China may be an effort to better adapt to the current pressures and challenges facing the semiconductor industry and to adjust resources to be more flexible to meet market demand. While the layoffs have brought some uncertainty, ARM also highlighted its focus on China's software ecosystem and expressed its commitment to supporting local developers while remaining competitive. In the future, it is worth further monitoring how ARM will respond to the volatility of the semiconductor market and changes in the global economic environment.