FILE PHOTO: The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan, July 20, 2017.
Source: Reuters

SoftBank planning to layoff 30% of workforce in Vision Funds

According to latest reports coming from the labour markets, investment division of SoftBank Group, the SoftBank Vision Fund is reportedly planning to lay off 30% staff of the venture capital fund. Several sources confirmed with CNBC Network that the bank is seriously considering restructuring of Vision Fund as it was hit with record losses of $17.2 billion for the June quarter.

SoftBank Group, the multinational holding company based in Tokyo Japan has been facing issues with their investments for the past few months as global economy face serious repercussion of Russian invasion of Ukraine.

Another report by Bloomberg News stated that the recent plans by SoftBank to lay off 30% of workforce in Vision Fund will impact nearly 150 to 300 employees in the investment division.

Global economic slowdown triggered by COVID-19 pandemic, supply chain crisis and latest Russia Ukraine war caused huge financial loss for companies invested by SoftBank Vision Fund. Despite posting higher valuations in the previous year, the companies supported by SoftBank got hit hard by the increasing inflation and higher interest rates imposed by the central banks across the world.

The unexpected economic events which occurred after the Russian invasion of Ukraine derailed the financial estimates of SoftBank Vision Fund regarding their major investments.

Founder of the group, Masayoshi Son had earlier stated that the venture capital company will slow down investments in startups and tech ventures as tech stocks around the world faced continuous losses for a long period of time. Increasing regulatory hurdles in various countries are also cited as a major reason for the decision to slow down investments in new age tech startups and such companies. The decision to slowdown investments was informed by Masayoshi Son himself to other top executives of SoftBank Group.

SoftBank Group currently has more than 14 billion dollars worth investments in India which mainly consist of tech startups and internet related ventures. Few major investments of the company in India include, Ola, Ola Electric, Pay Tm, Oyo, Flipkart, Fubgible, PolicyBazaar, Delhivery and Uber.

Continuing investment crisis faced by SoftBank Vision Fund is expected to inflict heavy damages on investments in Indian startups.