Business

SoftBank's investment arm to lay off 15% of its global staff, say Bloomberg and FT

The decision, according to internal FT sources, comes after companies invested by the Vision Fund lost $18 billion in value

Softbank
  • The decision, according to internal FT sources, comes after companies invested by the group lost $18 billion in value;
  • SoftBank Group International, an investment arm led by Marcelo Claure, who is responsible for the Innovation Fund, of investments in Latin America, also reduced its staff by about 26 out of 230, said another person familiar with the matter to Bloomberg.

According to Bloomberg and the Financial Times, the investment arm of the Japanese conglomerate SoftBank, SoftBank Investment Advisers (SBIA), responsible for the $100 billion Vision Fund, is about to lay off 15% of its 500 global staff. The decision, according to internal FT sources, comes after companies invested by the group lost $18 billion in value.

The round of cuts, the first one since the creation of the fund, in 2016, is set to begin this week.

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As reported by FT and Bloomberg, the layoffs occurred despite the rapid recovery of SoftBank’s shares. In March, SoftBank’s shares hit their worst low in four years. This prompted SoftBank’s founder Masayoshi Son to revise his plans to create a second Vision Fund.

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SoftBank Group International, an investment arm led by Marcelo Claure, who is responsible for the Innovation Fund, of investments in Latin America, has also recently reduced its staff by about 26 out of 230, said another person familiar with the matter to Bloomberg.