Imagination Technologies Announces 20% Workforce Cut Amidst Business Challenges

UNITED KINGDOM: In a strategic move to navigate a tumultuous business landscape, Imagination Technologies, the U.K.-based chip technology design maker, has revealed plans to lay off 20% of its workforce, according to confidential sources close to the matter.
The company, known for supplying chip technology to tech giant Apple since a 2020 agreement, cited a challenging “business environment” over the past 18 months as the driving force behind the decision.

According to an internal message that Reuters reviewed, the layoffs would be organization-wide and affect every department.
Imagination Technologies, a key competitor to Arm Holdings, recently went public, disclosing 559 staffers at the end of 2022, as per U.K. regulatory filings.

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Reports suggest that as many as 130 jobs are at risk in the U.K., heightening concerns about the local impact of the workforce reduction.
In response to queries about the layoffs, Imagination Technologies released a statement acknowledging the necessity to “adapt to the challenging and evolving market” but declining to provide further details.
The tech firm, owned by private equity firm Canyon Bridge and backed by the Chinese state-owned China Reform Holdings, faced a significant setback in 2017 when Apple announced plans to develop its own graphics technology. 
This announcement led to a 70% drop in Imagination’s shares at the time. Despite these challenges, the company reported a profit before tax of £17 million ($20.9 million) on revenue of £120.3 million for the last fiscal year, according to official filings.
Apple has not yet responded to requests for comment on the situation, leaving the industry and affected employees awaiting further developments in this unfolding scenario.

Also Read: Apple Set to Refresh Entire iPad Lineup in 2024: What to Expect

Originally posted 2023-11-14 07:00:00.