Japanese technology investment firm SoftBank Group Corp. lost more than $23 billion dollars in the second quarter of 2022, according to The Wall Street Journal.
The massive losses have already led to a pivot in investment strategy, with subsidiary Vision Fund approving only $600 million in new investments during the first quarter, $20 billion less than the same time last year, according to Reuters. In conjunction with a slowdown in investments, Chief Executive Officer Masayoshi Son announced that there would be significant cost cuts, including layoffs, the WSJ reported.
âI have no choice but to cut a significant number of employees at the Vision Fund,â he said at a press conference according to the WSJ. He said the company needed to undergo âcost cuts with no sacred cows.â
SoftBankâs technology stocks have fallen from inflationary pressures and rising interest rates from central banks across the world, according to CNBC. The company has significant holdings in firms like DoorDash, which has seen share prices drop significantly this year.
