SoftBank Cuts Vision Fund Workforce by 30% for Cost Reduction...

SoftBank Chairman Masayoshi Son [Photo by Reuters]

[Asia Economy Reporter Lee Ji-eun] Japanese SoftBank plans to cut at least 30% of the Vision Fund workforce to reduce costs after recording its worst-ever performance in the second quarter.

On the 29th (local time), major foreign media including Bloomberg cited SoftBank officials reporting that SoftBank plans to reduce about 150 employees in the Vision Fund division and related affiliates. A source who requested anonymity said, "Layoff notices will be sent to employees, and about 30% of the workforce is expected to be subject to restructuring," adding, "Key cost management departments including the US, UK, and China are affected by the reduction decision." According to another source, back-office staff such as investment and finance teams are also reportedly included in the reduction targets.

One foreign media outlet reported, "Although it was already known that SoftBank would undertake restructuring, the number of employees being cut is twice as many as expected."

SoftBank recorded a net loss of $23 billion (approximately 32 trillion KRW) in the second quarter. The Vision Fund, established to invest in IT companies, suffered nearly $50 billion in losses in the first half of the year due to the global stock market downturn and the decline in tech stocks, which significantly impacted the deficit. Chairman Masayoshi Son stated regarding the worst-ever results, "We will engage in cost-cutting without sacred cows," indicating that internal cost reductions such as workforce cuts are inevitable.

In May, as losses stemming from the Vision Fund snowballed, SoftBank also implemented salary cuts for key executives. SoftBank CEO Ken Miyauchi's annual salary was set at 539 million yen, down 15% from the previous year, and SoftBank CFO Yoshimitsu Goto's salary was cut by 40% to 480 million yen.

Additionally, SoftBank sold part of its stake in Alibaba, a Chinese e-commerce company with which it has had a 20-year relationship, to secure cash. To raise funds, SoftBank is also pursuing a plan to list ARM on the New York Stock Exchange by the end of March next year, when the 2022 fiscal year ends.

This content was produced with the assistance of AI translation services.