SoftBank’s Vision Fund looking at 20% job cuts: Report
This comes amidst reports of the firm downsizing its operations and shedding assets to fund its bets in artificial intelligence.
SoftBank’s Vision Fund is mulling laying off 20% of its workforce, Reuters reported citing a person familiar with the matter.
Vision Fund is one of the largest technology-focused investment funds in the world and has invested in a number of Indian companies including EV-maker Ola Electric and food-tech major Swiggy.
According to the report, SoftBank, which employed about 282 people as of March-end, is looking to let go of more than 50 roles.
The proposed layoffs come in the backdrop of the firm’s shift in strategy to write large cheques to back innovation in artificial intelligence. This includes its plan to invest about $40 billion in ChatGPT-maker OpenAI as well as a $6.5-billion deal to acquire chip designer Ampere Computing.
As part of SoftBank’s ambitious Stargate project, the firm is looking to build $500 billion worth of data centres over four years. However, SoftBank’s CFO Yoshimitsu Goto, in a briefing in Tokyo said that the project has been delayed by longer than expected due to negotiations with other parties, including decisions on sites, the report said.
Goto added that the banks involved in the project financing including Japan’s “megabanks” and major US banks have shown positive interest in the scheme.
SoftBank has been downsizing its operations and shedding assets to fund its bets in artificial intelligence. It recently has raised $7.8 billion by selling off a portion of its holding in T-Mobile in June and August.
SoftBank Group posted a modest profit in its most recently quarterly performance. The Japanese investment conglomerate reported a net profit of $2.87 billion in the first quarter (April-June).
Edited by Swetha Kannan