Prior to this latest layoffs, Softbank also has slashed 150 workers globally in last September.
Heaptalk, Jakarta — A giant multinational company based in Japan, SoftBank Group Corp, is reportedly to carry out a new layoff round in its Vision Fund investment arm. This job-cutting measure will affect about 30% of the staff and will be announced in the next two weeks.
Prior to this issue, the Company has been laid-off 150 workers from investment business teams and SoftBank Group International last September. After performing this decision, Vision Fund is reportedly only has 349 employees by the end of March 2023. However, significant investment losses apparently urges the company to rejoin the layoff trend.
Based on its financial report, the company experienced annual net loss of ¥970 billion, approximately US$7.2 billion, for the year ended on March 31st. The group reduced investment losses in its Vision Fund unit by selling its stake in Alibaba Group Holding Ltd.
According to the company, Vision Fund ll’s portfolio was valued at US$31 billion at the end of March, compared with an acquisition cost of US$49.9 billion.
SoftBank has radically scaled back its investment activity. Concurrently, the CEO of SoftBank has withdrawn from public presentations to focus on chip design firm Arm based in Cambridge, United Kingdom. The company also submitted confidentially for the United States stock exchange listing targeted to go public this year and would provide a much-needed cash injection for SoftBank.
Based on the information of the anonymous spokesperson, SoftBank has been pursuing a defensive strategy to shore up its balance sheet. This conglomerate company also claimed to discover a “balance between defense and offense,” which is expected to invest more in the future.
SoftBank, an aggressive investor in tech companies such as fintech giant Klarna and TikTok owner ByteDance, has perceived the valuation of its portfolio drop amid sharp interest hikes and rising US-China tensions. Following this news, the company’s shares were up 5% in Tuesday morning trade.
