Retrenchment is not being called by its name in companies around the world because people are worried about a recession. Once again, SoftBank Group Corp. is getting ready for another round of layoffs. In this round, people will be let go from the group’s Vision Fund investment arm.
Reuters says that the company made this decision in order to save money. In the next two weeks, we might find out who made the short list for this new round. Under this, 30 percent of the employees, including US employees, are likely to be fired.
Vision Fund unit lost a lot of money on investments
A company report says that SoftBank’s Vision Fund has lost a lot of money on its investments. At the end of the March 2023 quarter, 349 people work for the company. Reuters says that SoftBank didn’t say anything about the layoffs.
SoftBank is known for putting money into tech companies like the big fintech company Klarna and the company that owns the app TikTok. The value of the group’s portfolio has gone down because of a sharp rise in interest rates and tensions between the US and China.
For the year ending March 31, the group had a net loss of 970 billion yen ($7.2 billion). It cut down on investment losses in the Vision Fund unit by selling its stake in Alibaba Group Holding Ltd. (9988.HK). The report said that Vision Fund 2’s portfolio was worth $31 billion at the end of March, but it cost $49.9 billion to buy.
Source – discountwalas.com