Nov 13 (Reuters) – Chip know-how design maker Imagination Technologies plans to put off 20% of the corporate’s employees, in line with sources acquainted with the matter.

The U.Okay.-based firm, which signed an settlement to provide Apple (AAPL.O) with chip know-how in 2020, mentioned it was reducing the employees due to a difficult “business environment” during the last 18 months, in line with an inside message reviewed by Reuters.

The cuts are company-wide and each unit will likely be affected, in line with one of many sources.

Imagination mentioned in a press release the corporate was taking the “steps necessary to adapt to the challenging and evolving market” and declined to remark additional.

Imagination makes know-how that competes with Arm Holdings (O9Ty.F), which not too long ago went public, and had 559 staffers on the finish of 2022, in line with a current submitting with U.Okay. regulators.

In the U.Okay. as many as 130 jobs have been in danger, one of many sources mentioned.

Imagination Tech is owned by the personal fairness agency Canyon Bridge, which is backed by the Chinese state-owned China Reform holdings. Canyon Bridge acquired Imagination in 2017 after Apple mentioned it will develop its personal graphics know-how, which despatched the corporate’s shares down 70%.

Apple didn’t instantly reply to a request for remark.

For final 12 months, Imagination reported revenue earlier than tax of £17 million ($20.9 million) on income of £120.3 million, in line with filings.

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