SoftBank Layoffs: Not TCS or xAI, this bank has now laid off 20% of its employees, again due to AI

SoftBank Layoffs: The rapidly advancing era of AI is transforming the way work is done around the world. This is directly impacting employees. Recently, there have been reports of layoffs at major tech companies. 

In this context, SoftBank, one of the world's largest banks, has taken a significant decision. The company has announced the layoff of 20% of its employees and is preparing to shift its focus entirely to artificial intelligence (AI).

SoftBank Group has made a major change to its Vision Fund division, deciding to permanently lay off 20% of its employees. According to a Reuters report, SoftBank's internal memo clearly states that approximately 60 employees will lose their jobs. 

This move reflects a major shift in the company's strategy. SoftBank is now returning to its founder Masayoshi Son's high-risk, high-reward investment style, but this time with a strong focus on artificial intelligence.

The company is in profit but still there are layoffs

Earlier, layoffs used to happen due to the company going into losses, but now the situation has changed. For your information, let you know that Vision Fund has registered its strongest quarterly performance since June 2021. 

In this, it has benefited a lot especially from public holdings like Nvidia and Coupang. In a conversation with Reuters, the spokesperson of the company told that we keep adjusting our organization so that long term strategy can be implemented in a better way. He said that our focus is to make large and reliable investments in AI and breakthrough technologies.

Investment is going to be made here

This big change clearly shows that SoftBank will also now lay off employees like other tech companies and focus on AI infrastructure. According to reports, SoftBank CEO Masayoshi Son is making some selective but big bets. 

These include $30 billion investment in OpenAI, purchase of chip designer Ampere Computing for $6.5 billion, $500 billion Stargate project (which is a joint venture of OpenAI and Oracle) and $1 trillion AI industrial park with TSMC.

With fewer employees and a narrower focus, the Vision Fund no longer needs as many investment advisors. In 2020, the Vision Fund had 474 employees, but this number has now declined by more than 40%. 

This change also reflects Masayoshi Son's belief that the next era of technology will be driven by AI models, semiconductors, and data infrastructure.

For your information, SoftBank has already invested in giant companies like Intel and Nvidia and has already acquired chip companies like Graphcore and Ampere Computing. The company's goal is to build a full-stack AI ecosystem.