[ad_1]
SoftBank’s Vision Fund posted a record loss in the year ending March 31, 2023. The main technology investment unit has been hit by a drop in share prices of technology companies.
Accu-Con | bloomberg | Getty Images
SoftBank Group Corporation He plans a new round of layoffs at investment arm Vision Fund, two people familiar with the matter said, in the Japanese conglomerate’s latest cost-cutting move.
One of the people added that the layoffs, which could be announced in the next two weeks, could affect up to 30% of its employees in the unit, including employees in the US. According to a company report, SoftBank’s Vision Fund unit, which suffered significant investment losses, had 349 employees at the end of March.
The sources declined to be identified because the information is confidential. SoftBank declined to comment.
If completed, it would follow about 150 job cuts globally at the investment arm and SoftBank International Group in September.
SoftBank, a powerhouse investor in tech companies like fintech giant Klarna and owner of TikTok ByteDance, has seen its portfolio valuation drop amid sharp interest rate increases and rising tensions between the United States and China.
The group reported a net annual loss of 970 billion yen ($7.2 billion) for the year ending March 31. The loss of investment in the Vision Fund unit was mitigated by selling its stake in Alibaba Group Holding Ltd.
Vision Fund 2’s portfolio was valued at $31 billion at the end of March compared to an acquisition cost of $49.9 billion.
SoftBank has drastically scaled back its investment business and Son has pulled out of public presentations to focus on chip designer Arm’s slate.
Cambridge, England-based Arm has filed confidentially to be listed on the US stock market which could land later this year and provide a much-needed cash injection for SoftBank.
Intel is in talks with Arm to be an anchor investor in the chip designer’s IPO, a source familiar with the matter said Monday.
SoftBank shares were up 5% in morning trade Tuesday after the news.
While SoftBank has been pursuing a defensive strategy to shore up its balance sheet, the group said in May that it was looking to find a “balance between defense and offense” — a sign that it may invest more in the future.
[ad_2]
