SoftBank Looks To Downsize Vision Fund Workforce By 20%; Employees Fear Job Cuts Up To 50%

SoftBank Looks To Downsize Vision Fund Workforce By 20%; Employees Fear Job Cuts Up To 50%
  • SoftBank Group Corp SFTBF SFTBY aims to slash at least 20% of employees at its loss-churning Vision Fund operation, Bloomberg reports.
  • The plan follows public pledges from founder Masayoshi Son to reduce the headcount at the leading tech investor.
  • SoftBank will slash a minimum of 100 positions, the report specified.
  • The cuts will mostly be in the U.K., U.S., and China operations. The Vision Fund unit had about 500 employees, including Latin America funds staff. 
  • Executive fear downsizing of up to 50%.
  • Son shared widespread cost-cutting plans at his conglomerate and the Vision Fund investment arm after a record $23 billion loss. 
  • Most of the losses came from a plunge in the valuations of portfolio companies, including Coupang, Inc CPNG and DoorDash, Inc DASH. SoftBank also reported a loss of $6 billion in foreign exchange.
  • Rajeev Misra, who helped Son set up the initial Vision Fund with almost $100 billion in 2017, quit as a corporate officer and EVP at SoftBank.
  • SoftBank raised over $17 billion by selling forward contracts on Alibaba Group Holding Ltd BABA.
  • SoftBank began talks to sell asset manager Fortress Investment Group and launched a buyback plan of up to 400 billion yen.
  • Son targeted Arm Ltd's initial public offering in 2023.
  • Analysts raised possibilities of SoftBank going private, citing quarterly loss, pledge of heavy cost-cutting, and self-criticism.
  • Price Action: SFTBY shares traded lower by 0.41% at $19.54 on the last check Friday.
  • Photo Via Wikimedia Commons

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