After Softbank, which is good at investing in the Internet business, handed over the worst financial report in history, the founder Masayoshi Son decided to start the operation with his Vision Fund (Vision Fund), and the layoff rate was as high as 30%. (Recap:Losing 1.4 billion is more comfortable!SoftBank’s Masayoshi Son: After admitting losses and investing in “Bitcoin”, the pressure is finally released)
China’s intensified interest rate hikes have affected the world supply chain, which not only caused a weak response in the European and American markets, but also caused serious losses to investment celebrities. According to Bloomberg, citing people familiar with the matter, SoftBank Group (SoftBank Group) is facing huge losses, and its venture capital arm, Vision Fund, is expected to cut 30%, and it is estimated that at least 150 employees will be affected by the layoffs.
Founded in 2017, the Vision Fund has raised more than $100 billion in capital, making it the world’s largest and most aggressive technology securities investment fund.
Reuters pointed out that the London-based Vision Fund investment department has about 500 employees, and the layoffs affect not only the investment analysis team, but also legal and financial staff, as well as employees of SoftBank International. The Financial Times pointed out that the rate of layoffs was twice as expected. The large-scale downsizing of personnel seems to echo the apology of the previous SoftBank founder Masayoshi Son at the earnings press conference on August 8:
I’m ashamed of my greed for profit in the past, and the world economy is in great disarray right now. The Vision Fund’s scaling back should be implemented globally.
Announced financial report in August to set a new loss record
SoftBank Group’s financial report as of the end of June was quite miserable, with a three-month net loss of US$23 billion, the highest single-quarter loss in the group’s history; the total loss of the Vision Fund and other investments accounted for US$17 billion, and most of its losses came from the investment portfolio. The company’s valuation has plummeted, stock prices have fallen sharply, and the yen’s heavy depreciation has also increased debt.
In order to solve the serious losses, SoftBank reduced the number of investment portfolio companies to 35 after June, and sold 30% of its Alibaba shares through prepaid forward contracts; and released the shares of early investment such as Uber, with a total of 5.6 billion The US dollar’s earnings this quarter, together with the current personnel streamlining measures, will reduce the investment department’s business and reduce expenses.
Investing in the company’s huge loss
SoftBank currently owns two Vision Funds with a combined size of about US$150 billion. Its investment projects in recent years have suffered heavy losses in Chinese concept stocks, including SenseTime, which was sanctioned by the United States, and the head of Education, which was delisted from the New York Stock Exchange. Didi Dache, which was delisted in the U.S. as a result of China’s delisting.
SoftBank has declined to comment on the layoffs. The group’s shares fell 131 yen (-2.6%) in Tokyo trading today (30th), to 4,900 yen per share as of press time.
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