SoftBank Group Corp. reportedly plans to implement layoffs at its Vision Fund, its $100 billion venture capital arm. The layoffs are expected to affect up to 30% of Vision Fund employees and come as the fund faces several challenges, including the decline in tech stocks and the rising cost of living.
SoftBank’s Vision Fund was launched in 2016 to invest in high-growth technology companies worldwide. The fund has made several high-profile investments, including Uber, WeWork, and Alibaba. However, the fund has also suffered several losses, including a $10 billion write-down on its investment in WeWork.
The decline in tech stocks has been a significant challenge for SoftBank’s Vision Fund. The Nasdaq Composite Index has fallen by more than 20% since its peak in November 2021. This decline has wiped out billions of dollars in value from Vision Fund investments.
The rising cost of living is another challenge facing SoftBank’s Vision Fund. Living costs in major tech hubs like San Francisco and New York have risen rapidly in recent years. This has made it more expensive for Vision Fund to hire and retain top talent.
The layoffs at SoftBank’s Vision Fund are a sign of the global tech industry’s challenges. The industry faces several headwinds, including declining tech stocks, the rising cost of living, and the ongoing war in Ukraine. These challenges will likely continue to pressure tech companies in the coming months and years.
In addition to the layoffs, SoftBank is reportedly considering other measures to reduce costs at its Vision Fund. These measures could include selling off assets and reducing investment activity.
The layoffs and other cost-cutting measures indicate that SoftBank is taking steps to address the challenges facing its Vision Fund. However, it remains to be seen whether these measures will be enough to turn the fund around.