Imagination Technologies, a U.K.-based chip technology design maker, is reported to be planning a significant reduction in its workforce, with around 20% of its staff set to be laid off. This decision is attributed to a challenging business environment over the past 18 months, as stated in an internal message. The company emphasized that this move is a response to the demanding and evolving market conditions, affecting all units across the organization. Meanwhile, Imagination Technologies declined to provide further comments on the matter.

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Imagination Technologies, which supplies chip technology to Apple, expressed the need to adapt to the current market challenges. The company's workforce reduction is anticipated to impact all areas of its operations. Imagination Technologies, as of the end of 2022, reportedly had 559 employees, with approximately 130 jobs at risk in the U.K.

Owned by private equity firm Canyon Bridge, which is supported by the Chinese state-owned China Reform Holdings, Imagination Technologies has encountered significant changes in its ownership structure in recent years. Following Apple's announcement of developing its own graphics technology, leading to a substantial decline in Imagination's shares, Canyon Bridge acquired the company in 2017.

Imagination Technologies reported a profit before tax of £17 million ($20.9 million) on revenue of £120.3 million in the previous year. Despite the agreement to supply chip technology to Apple, the company's recent decision indicates the magnitude of the current market challenges it is facing. Apple, as of the report, has yet to comment on the situation at Imagination Technologies.