In the wake of its failed Nvidia deal, Arm is cutting up to 15% of its workforce, or roughly 1,000 jobs.

Nvidia made a high-profile attempt to purchase Britain’s leading tech company for some $40 billion. Arm’s current owner, SoftBank, has been eager to sell the chip designer in an effort to recoup losses it has incurred from some of its other investments. Regulators on both sides of the Atlantic, however, objected to the merger over anti-competitive concerns, ultimately scuttling the deal.

In the wake of the failed deal, Arm’s CEO resigned and was succeeded by Rene Haas. Haas has now informed employees of a significant cut in the company’s workforce, some 15%, or roughly 1,000 employees. The new CEO sent an email to employees that was seen by The Telegraph, according to The Register.

“To stay competitive, we need to remove duplication of work now that we are one Arm; stop work that is no longer critical to our future success; and think about how we get work done.”

Haas added that Arm needs “to be more disciplined about our costs and where we’re investing.”

SoftBank has already made it clear it intends to take Arm public. The workforce cuts are likely an effort to trim the fat from Arm and put it in the best position to compete as an independent company.