Job Cuts: According to the news agency Reuters, the company has taken this decision to cut costs. The shortlist for this new round may be announced in the next two weeks. Under this, 30 percent of the employees are likely to be fired, which includes US employees.
Amid fears of recession, the process of retrenchment in companies around the world is not taking its name. SoftBank Group Corp is once again preparing for a new round of layoffs. In this round, there will be layoffs in the Vision Fund investment arm of the group. According to the news agency Reuters, the company has taken this decision to cut costs. The shortlist for this new round may be announced in the next two weeks. Under this, 30 percent of the employees are likely to be fired, which includes US employees.
Heavy investment loss to Vision Fund unit
According to a company report, SoftBank’s Vision Fund unit has suffered huge investment losses. The company has a total employee strength of 349 at the end of March 2023 quarter. However, according to Reuters, SoftBank declined to comment on the layoffs.
SoftBank is known as an investor in tech companies such as fintech giant Klarna and TikTok owner ByteDance. The group’s portfolio valuations have seen a decline amid sharp hike in interest rates and US-China tensions.
The group reported an annual net loss of 970 billion yen ($7.2 billion) for the year ended March 31. It reduced investment losses in the Vision Fund unit by selling its stake in Alibaba Group Holding Ltd (9988.HK). At the end of March, Vision Fund 2 had a portfolio of $31 billion, while its acquisition cost was $49.9 billion, the report said.
