- If complete, this would follow September’s elimination of about 150 jobs worldwide in the investment arm and at SoftBank Group International.
- SoftBank saw its portfolio’s valuation decline due to sharp rate hikes and rising US-China tensions.
SoftBank’s Vision Fund reported a record loss for the year ended March 31, 2023. The flagship tech investment unit has been hit by falling tech stock prices.
Akio Kon | Bloomberg | Getty Images
Two people familiar with the matter said that SoftBank Group Corp is planning a new round of layoffs at its Vision Fund investment arm, marking the Japanese conglomerate’s latest cost-cutting move.
The layoffs, which could be announced in the next two weeks, could affect up to 30% of the staff at the unit, including those based in the US, one of the people added. SoftBank’s Vision Fund unit, which was experiencing heavy investment losses, employed 349 people at the end of March, according to a company report.
The sources were not named because the information was confidential. SoftBank declined to comment.
If complete, this would follow September’s elimination of about 150 jobs worldwide in the investment arm and at SoftBank Group International.
SoftBank, an aggressive investor in tech companies including fintech giant Klarna and TikTok owner ByteDance, saw its portfolio’s valuation fall amid sharp rate hikes and rising US-China tensions.
The company posted an annual net loss of 970 billion yen ($7.2 billion) for the year ended March 31. The Vision Fund unit’s investment loss was offset by the sale of its shares in Alibaba Group Holding Ltd. cushioned.
Vision Fund 2’s portfolio was valued at $31 billion at the end of March, compared to an initial cost of $49.9 billion.
SoftBank has radically scaled back its investment activity and Son has withdrawn from public presentations to focus on chip designer Arm’s IPO.
Arm, based in Cambridge, England, has filed a confidential US listing application, which could be filed later this year, which would provide SoftBank with a much-needed cash injection.
According to a source familiar with the matter, Intel is negotiating with Arm on Monday over the role of an anchor investor in the chip designer’s IPO.
SoftBank shares rose 5% in Tuesday morning trade following the news.
While SoftBank is pursuing a defensive strategy to bolster its balance sheet, the conglomerate said in May that it’s aiming for a “balance between defense and attack” — a signal it could invest more in the future.