ARM swings the axe

NEWS UK chip giant ARM has announced it is to axe 10 per cent of its workforce - approximately 80 people. The move comes after the firm announced a third quarter profit which was down by more than 50 per cent on the previous three month period. ARM had previously shocked analysts by warning its results were going to be significantly down on estimates which predicted static quarter-on-quarter profits. Third quarter profits were £8m, down from £16.2m for the previous quarter and £12.9m for the comparable period last year. Revenue for the third quarter was £33.3m - down from £43.2m for the previous quarter. The company said the continuing downturn means it has to take cost-cutting measures to ensure continued survival and profitability. The cuts will result in a one-off charge of around £2m, but going forward they are expected to save ARM around £5m per year.