SoftBank-Backed Arm Holdings Lays Off Over 70 Software Engineers In China As Tech Slump Hits Hard
Portfolio Pulse from Benzinga Neuro
Arm Holdings Plc has laid off over 70 software engineers in China, reflecting the semiconductor industry's downturn. The layoffs at Arm, which is backed by SoftBank Group Corp., are part of a broader trend as companies like Qualcomm Inc. have also reduced their workforce. Arm's global sales share from China has decreased from 25% to 20%, and the company faces challenges from U.S. technology export restrictions to Chinese firms. Arm is also dealing with disputes with the former head of Arm China, which previously laid off over 100 employees.
December 18, 2023 | 11:00 am
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Qualcomm Inc. has also reduced its workforce due to the semiconductor industry's downturn, indicating a broader trend that could affect investor sentiment.
The mention of Qualcomm Inc. alongside Arm Holdings suggests that the industry is facing significant headwinds, which could lead to negative investor sentiment and potentially impact Qualcomm's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
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SoftBank Group Corp., as the backer of Arm Holdings, may face indirect consequences from the layoffs and challenges Arm is experiencing, potentially affecting investor outlook.
SoftBank's association with Arm Holdings means that negative news from Arm could indirectly impact SoftBank's perception in the market, potentially leading to a short-term negative impact on its stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50