ARM Holdings to cut workforce by 10%

British chip designer ARM Holdings is cutting 10 per cent of its workforce in a bid to lower costs by £5 million sterling a year.

The news came as the company, which is a competitor of Irish firm Parthus Technologies, posted a 38 per cent drop in third-quarter profits and warned revenues will remain "flattish for the foreseeable future".

Chief executive Mr Warren East said: "By taking decisive action to reduce our employee costs now, we will be better positioned to benefit from any improvement in market conditions".

For the three months to September, pretax profit came in at £8 million sterling, down from £12.9 million last year, as sales fell 11 per cent to £33.3 million.

PA