Most layoffs are expected to occur in the United States and the United Kingdom.

Nvidia officially confirmed last month that its acquisition of Arm had been canceled due to difficulties in convincing regulators that the merger would not affect Arm's free licensing model.

According to GSMArena, on Monday, Arm's new CEO Rene Haas told employees that the company faces redundancies that "could affect up to 1,000 employees," according to the Telegraph. Arm employs 6,400 people, 3,500 of whom are based in the United Kingdom.

Most layoffs are expected to occur in the United States and the United Kingdom. Emails written by Haas, as seen by The Telegraph, include the following excerpt.

This is going to be a tough time for everyone, so I want to be clear on why we are doing this. ”To be successful in the opportunities we have ahead of us, we need to be more disciplined about our costs and where we’re investing […] To Stay Competitive, we need to remove duplication of work now that we are one Arm: stop work that is no longer critical to our future success; and think about how we get work done. It’s essential that we focus on activities that will move our strategy forward at pace.

Recently, Softbank confirmed its intention to go public with Arm as a way of recovering some of the losses from the failed purchase. These layoffs are part of the company's strategy to reduce costs, which will make it more attractive to investors prior to its IPO.

Prior to the announcement, when the deal between Nvidia and ARM was made public, major tech firms such as Qualcomm, Microsoft, and even Google expressed their concern that it would give Nvidia an unfair competitive advantage over its rivals in the semiconductor industry. All things considered, the design of ARM's chips are used by a wide range of competitors. Despite Nvidia's assurances that it will maintain its business model following the acquisition, antitrust regulators in the United States, the European Union, the United Kingdom, and even China have begun investigations and are attempting to halt the transaction.

After failing to clear regulatory hurdles for the past year and a half, Nvidia has confirmed that it is ending its acquisition of ARM. After the announcement, ARM's CEO resigned and was replaced by Rene Haas, who will take over as CEO.

As Nvidia claims, it was unable to convince regulators that this deal would not affect ARM's free licensing model, and even offered to set up a separate entity that would hold the licenses. SoftBank, the current owner of ARM, will receive a $1.25 billion break fee as a result of the deal's failure.