Arm (NASDAQ:ARM) layoffs are a hot topic on Tuesday as investors react to the company cutting jobs in China.
Recent reports from insiders claim that Arm is cutting 70 software engineer jobs in the country. However, these sources also say that 15 of these employees will be moved to new positions following the job cuts.
Here’s what Arm had to say about these layoffs in a statement to The Business Times.
“In order to ensure that the China Software Ecosystem can fully maximise the benefits of Arm performance and features, Arm is restructuring its China software engineering resources to focus on direct support for local developers.”
What’s Behind the Arm Layoffs?
Arm job cuts come at a time when demand for semiconductors is weakening. The company noted as much with a Chinese sales slump in its latest earnings report. It also provided guidance that failed to impress investors.
It’s not just Arm that’s affected by the weak demand for electronics. Current estimates from the Semiconductor Industry Association are for sales to drop in 2023 when compared to 2022. However, they group is expecting semiconductor sales to bounce back in 2024.
ARM stock is up slightly on Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
