SoftBank Group's Vision Fund is preparing to cut staff by about 15 per cent after reporting record losses for the last fiscal year, according to sources.
Rajeev Misra, head of the London-based Vision Fund, expanded the number of planned cuts in recent days to as many as 80 employees out of roughly 500, said one source, who asked not to be identified. The fund had planned to trim about 10 per cent of its workforce as of last month. The cuts may be announced as soon as Wednesday, the source said.
SoftBank Group International, an arm led by Marcelo Claure, reduced its staff by about 26 out of 230, said another source familiar with the matter. Bloomberg reported last month that the group’s cuts were expected to be about 10 per cent.
SoftBank, led by billionaire founder Masayoshi Son, reported a record operating loss of about $13 billion (Dh47.7bn) last month as it wrote down the valuations of companies like WeWork and Uber. In just one year, the Vision Fund went from the main source of booked profits at SoftBank to the biggest contributor to that loss. Mr Son originally said he hoped to raise a new Vision Fund every two to three years, but he has conceded he cannot attract money now because of the poor performance.
“SoftBank is good at controlling when to step on the gas pedal and when to pump the brakes,” said Shinji Moriyuki, an analyst at SBI Securities. “Many Japanese companies are both cautious to advance and very reluctant to retreat. It makes sense now for the Vision Fund to cut back.”
Spokespeople for the Vision Fund and SoftBank Group declined to comment.
SoftBank’s businesses were battered early this year with the coronavirus outbreak and its stock tumbled. Mr Son then unveiled plans to buy back stock and pay down debt by selling off about $42bn in assets, including part of its stake in Alibaba Group. SoftBank shares have doubled since their low in March. They were little changed on Wednesday.
Separately, Arm, a chip technology company owned by SoftBank Group, said the chief executive of its China joint venture has been replaced. A majority of directors on the board of Arm China voted to remove Allen Wu, the company said.
At the Vision Fund, Mr Misra is looking to slice as much as 20 per cent of its costs, the first source said. The cuts may disproportionately affect staff responsible for supporting portfolio companies, known internally as the operating group, the source said. As many as 18 people in the group will lose their jobs, out of a total of about 50.
The focus of the cuts on the operating group raises the question of why it is letting go of staff with the expertise needed to help portfolio companies through the crisis. More than 85 per cent of the fund’s capital has already been spent and the remainder is reserved for follow-on investments, which suggests start-up operators will be needed more than deal makers.
Most of the operating group’s members were hired by Mr Claure, SoftBank’s chief operating officer, in 2018 with the goal of helping start-ups fine-tune their strategies to improve execution and speed their path to profitability. Mr Claure’s mandate put him on a collision path with Mr Misra, who ended up absorbing the team into the Vision Fund in early 2019. Gerry Lopez, a former executive at Starbucks and Pepsi, heads the group.
Some of the Vision Fund’s staff may transition to positions at SoftBank, the person said. Two of its managing partners are already planning to move into new roles at the Japanese company. Akshay Naheta will become senior vice president, assisting Mr Son in investments and providing strategic advice. Kentaro Matsui will transition to a senior advisory role at SoftBank.
The staff cuts come just a week after SoftBank revealed that Mr Misra received a substantial increase in compensation, despite massive losses in the business. The former Deutsche Bank trader earned ¥1.61bn ($15 million/Dh55.1m) in the year ended March 31, more than double his pay a year earlier. Mr Misra was SoftBank’s second-highest-paid executive in the period, after Mr Claure.
SoftBank Group may also see staff departures. About 30 of the 192-person workforce at the Tokyo-based business have submitted resumes seeking jobs to one of Japan’s recruitment agencies, according to another source familiar with the matter.
If you go...
Flying
There is no simple way to get to Punta Arenas from the UAE, with flights from Dubai and Abu Dhabi requiring at least two connections to reach this part of Patagonia. Flights start from about Dh6,250.
Touring
Chile Nativo offers the amended Los Dientes trek with expert guides and porters who are met in Puerto Williams on Isla Navarino. The trip starts and ends in Punta Arenas and lasts for six days in total. Prices start from Dh8,795.
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
SPEC%20SHEET%3A%20APPLE%20IPAD%20PRO%20(12.9%22%2C%202022)
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FA Cup quarter-final draw
The matches will be played across the weekend of 21 and 22 March
Sheffield United v Arsenal
Newcastle v Manchester City
Norwich v Derby/Manchester United
Leicester City v Chelsea
UAE currency: the story behind the money in your pockets
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Walls
Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
Match info:
Wolves 1
Boly (57')
Manchester City 1
Laporte (69')
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
More from Neighbourhood Watch
In numbers
- Number of children under five will fall from 681 million in 2017 to 401m in 2100
- Over-80s will rise from 141m in 2017 to 866m in 2100
- Nigeria will become the world’s second most populous country with 791m by 2100, behind India
- China will fall dramatically from a peak of 2.4 billion in 2024 to 732 million by 2100
- an average of 2.1 children per woman is required to sustain population growth
Empty Words
By Mario Levrero
(Coffee House Press)
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
- Westminster, London
- Camden, London
- Glasgow, Scotland
- Islington, London
- Kensington and Chelsea, London
- Highlands, Scotland
- Argyll and Bute, Scotland
- Fife, Scotland
- Tower Hamlets, London
The specs
A4 35 TFSI
Engine: 2.0-litre, four-cylinder
Transmission: seven-speed S-tronic automatic
Power: 150bhp
Torque: 270Nm
Price: Dh150,000 (estimate)
On sale: First Q 2020
A4 S4 TDI
Engine: 3.0-litre V6 turbo diesel
Transmission: eight-speed PDK automatic
Power: 350bhp
Torque: 700Nm
Price: Dh165,000 (estimate)
On sale: First Q 2020
COMPANY PROFILE
Name: Mamo Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua Based: Dubai, UAE Number of employees: 28 Sector: Financial services Investment: $9.5m Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. How tumultuous protests grew
- A fuel tax protest by French drivers appealed to wider anti-government sentiment
- Unlike previous French demonstrations there was no trade union or organised movement involved
- Demonstrators responded to online petitions and flooded squares to block traffic
- At its height there were almost 300,000 on the streets in support
- Named after the high visibility jackets that drivers must keep in cars
- Clashes soon turned violent as thousands fought with police at cordons
- An estimated two dozen people lost eyes and many others were admitted to hospital
AS%20WE%20EXIST
%3Cp%3EAuthor%3A%20Kaoutar%20Harchi%C2%A0%3C%2Fp%3E%0A%3Cp%3EPublisher%3A%20Other%20Press%3C%2Fp%3E%0A%3Cp%3EPages%3A%20176%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20Now%3C%2Fp%3E%0A
RESULT
Arsenal 0 Chelsea 3
Chelsea: Willian (40'), Batshuayi (42', 49')
Profile Box
Company/date started: 2015
Founder/CEO: Mohammed Toraif
Based: Manama, Bahrain
Sector: Sales, Technology, Conservation
Size: (employees/revenue) 4/ 5,000 downloads
Stage: 1 ($100,000)
Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)
UAE currency: the story behind the money in your pockets
Recent winners
2002 Giselle Khoury (Colombia)
2004 Nathalie Nasralla (France)
2005 Catherine Abboud (Oceania)
2007 Grace Bijjani (Mexico)
2008 Carina El-Keddissi (Brazil)
2009 Sara Mansour (Brazil)
2010 Daniella Rahme (Australia)
2011 Maria Farah (Canada)
2012 Cynthia Moukarzel (Kuwait)
2013 Layla Yarak (Australia)
2014 Lia Saad (UAE)
2015 Cynthia Farah (Australia)
2016 Yosmely Massaad (Venezuela)
2017 Dima Safi (Ivory Coast)
2018 Rachel Younan (Australia)
