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SoftBank to lay off up to 30 per cent of Vision Fund staff after facing heavy losses

  • The Vision Fund unit had 349 employees at the end of March, and new lay-offs would add to the 150 jobs SoftBank Group International cut in September
  • The Japanese conglomerate has seen the valuation of its portfolio drop amid sharp interest rate hikes and rising US-China tensions

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A man looks at the logo of SoftBank Group Corp at the company’s headquarters in Tokyo on June 30, 2016. Photo: Reuters
Reuters

SoftBank Group Corp is planning a fresh round of lay-offs at its Vision Fund investment arm, two people familiar with the matter said, the latest cost-cutting move at the Japanese conglomerate.

The lay-offs, which could be announced in the next two weeks, may impact up to 30 per cent of its staff at the unit, including employees in US, one of the people added. SoftBank’s Vision Fund unit, which has booked heavy investment losses, had headcount of 349 at the end of March, according to a company report.

The sources declined to be identified as the information was confidential. SoftBank declined to comment.

If finalised, this would follow the elimination of about 150 jobs globally at the investing arm and SoftBank Group International in September.

SoftBank, an aggressive investor in tech companies such as fintech giant Klarna and TikTok owner ByteDance, has seen the valuation of its portfolio drop amid sharp interest rate hikes and rising US-China tensions.
The group reported an annual net loss of 970 billion yen (US$7.2 billion) for the year ended March 31. It cushioned the investment loss at the Vision Fund unit by selling down its stake in Alibaba Group Holding Ltd.

Vision Fund 2’s portfolio was worth US$31 billion at end-March compared with an acquisition cost of US$49.9 billion.

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