SoftBank cuts 150 jobs as investments plummet

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This comes just weeks after the firm reported a staggering $23 billion (£19 billion) net loss.

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Tea

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The world’s largest tech fund has slashed 150 jobs to cut costs as it deals with a fall in the value of its investments.

According to Reuters news agency, the SoftBank Vision Fund run by Japanese billionaire Masayoshi Son is set to send notices to employees in the UK, the US and China, affecting about 30% of the workforce.

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It comes just weeks after the firm posted a staggering $23 billion (£19 billion) net loss, the biggest in the company’s history as it became the latest victim of rising inflation and fears of a global recession.

The company said the loss “reflects a global decline in share prices due to rising concerns over an economic slowdown driven by inflation and rising interest rates as well as a decline in the fair value of private portfolio companies.”

SoftBank CEO Masayoshi Son admitted that the company had invested in a lot of start-ups that were in valuation bubbles. “The world is very confused,” he said at a results briefing.

This is not the first time the company has had to write off the value of its investment, following a loss of more than £1 billion from its stake in the failed supply chain finance business Greensil, as well as about £750 million from its stake in the collapsed German Is. Payment Business Wirecard.

The Nasdaq-100 index of US-listed technology companies is down nearly 40% since January, with social media firms such as Meta and Snap being the biggest losers, with 59% and 78% losing their respective share prices. has been eliminated.

Tech stocks have lost a combined $3 trillion in value since the start of the year, as rising inflation, the war in Ukraine and fears of an imminent recession erased gains made in 2021 and forced firms to downgrade growth forecasts. Motivated to reduce and cut the budget.

Credit: www.standard.co.uk /

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