SoftBank to lay off 150 employees worldwide, including Vision Fund unit

SoftBank to lay off 150 employees worldwide, including Vision Fund unit

SoftBank Group Corporation of Japan is reportedly laying off 150 employees worldwide at both its Vision Fund division and SoftBank Group International, as CEO Masayoshi Son cuts back after suffering a significant loss on his tech bets.

Sources claim that employees are receiving notices, which will affect approximately 30% of staff across the two organizations. Moreover, major cost centers including the United States, Britain, and China are also heavily impacted.

According to a person close to the matter, the layoffs will affect employees in the investment teams and back-office personnel in divisions like finance and legal.

Notably, Son made a commitment to slash expenditures after the Vision Fund arm posted a record of USD 50 billion loss in the six months leading up to June. Besides, the Japanese billionaire had been stung hard by rising interest rates and political unrest that had a negative impact on tech valuations.

SoftBank Group International, which controls other group interests, and was run by Marcelo Claure until he left the firm, is also being trimmed. Furthermore, Son has stated that SoftBank's second Vision Fund had dramatically limited its investment activity and will primarily manage its current portfolio.

SoftBank is attempting to wait out the current technological downturn in order to successfully launch the initial public offering (IPO) of Arm Ltd., the British chip manufacturing firm that it bought for USD 32 billion in 2016.

Besides, it has declared the intention to make this offering the largest ever for a chip business, for which it has also reduced its stake in major asset Alibaba Group Holding Ltd.

It is worth mentioning that Son announced that he would be meeting with Samsung Electronics Co. Ltd. to talk about the possibility of a strategic collaboration between Arm and the South Korean technology behemoth.

Source Credit:

https://www.livemint.com/companies/news/softbank-group-cuts-about-150-staff-at-vision-fund-global-arm-11664474740099.html