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SoftBank pledges sweeping cost cuts after US$23.4 billion loss

Bloomberg8/9/2022 01:55 PM GMT+08  • 6 min read
SoftBank pledges sweeping cost cuts after US$23.4 billion loss
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SoftBank Group Corp’s Masayoshi Son said he plans widespread cost-cutting at his Japanese conglomerate and its Vision Fund investment arm after a record US$23.4 billion ($32.3 billion) loss on plunging portfolio valuations and foreign currency losses. Shares dropped.

The Tokyo-based company lost the vast majority of that money -- US$17.3 billion -- in the Vision Fund, as it marked down the value of holdings such as Coupang, SenseTime Group and DoorDash. SoftBank also reported a US$6.1 billion foreign exchange loss because of the weaker yen.

The 64-year-old struck a darkly sombre tone after the results Monday, taking responsibility for buying into startups at the height of the market and pledging to slash expenses to get back on track. Son said he will review “everything” for potential cuts without any “sacred cows.” SoftBank will scrutinize senior and junior employees in both front and back offices to an extent never experienced before.

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