SoftBank’s Vision Fund posted a record loss for the year ended March 31, 2023. The leading technology investment unit was hit by the plunge in the price of technology stocks.
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SoftBank Corporation is planning a new round of layoffs at the investment arm of the Vision Fund, two people familiar with the matter said, the latest cost-cutting move at the Japanese conglomerate.
The layoffs, which could be announced in the next two weeks, could affect up to 30% of their staff at the unit, including employees in the US, one of the people added. SoftBank’s Vision Fund unit, which recorded heavy investment losses, had 349 employees at the end of March, according to a company report.
Disclaimer sources are identified as confidential information. SoftBank declined to comment.
If completed, this will result in the elimination of about 150 jobs globally in the investment division and SoftBank Group International by September.
SoftBank, an active investor in tech companies like fintech giant Klarna and TikTok owner ByteDance, has seen its portfolio valuation fall amid rising interest rates and rising US-China tensions.
The Group reported an annual net loss of 970 billion yen ($7.2 billion) for the year ended March 31. The Group offset investment losses at the Vision Fund unit by selling off its stake in Alibaba Group Holding Ltd.
Vision Fund 2’s portfolio was worth $31 billion at the end of March versus an acquisition cost of $49.9 billion.
SoftBank has radically scaled back its investments, and Son has retreated from public presentations to focus on listing chip design company Arm.
Cambridge, UK-based Arm has filed a security filing for a listing on a US stock exchange that could land later this year and will provide a much-needed cash boost to SoftBank.
Intel is in talks with Arm to be a major investor in the chip designer’s IPO, a source close to the matter said Monday.
Shares of SoftBank rose 5% in trading Tuesday morning following the news.
While SoftBank is pursuing a defensive strategy to bolster its balance sheet, the conglomerate said in May that it is looking for a “balance between defense and attack” – a signal that they can invest more in the future.
