Jack Ma is stepping down from the board just as Softbank announced a record $13 billion loss

Jack Ma is stepping down from the board just as Softbank announced a record $13 billion loss
Billionaire Jack Ma.REUTERS/Charles Platiau/File Photo
  • Jack Ma is resigning from SoftBank's board of directors effective June 25.
  • Ma has been a director at SoftBank for 13 years.
  • News of his departure came just as SoftBank posted a $13 billion loss, while Softbank's flagship vision fund suffered a $17.7 billion loss.
  • Visit Business Insider's homepage for more stories.

Alibaba founder and China's richest man Jack Ma has left SoftBank's board of directors. The news comes just as the company announced it has suffered a record financial loss of $13 billion.

Ma served on SoftBank's board for the past 13 years, and will officially resign on June 25 per a document from SoftBank.

No official reason has been given for Ma's resignation, but the billionaire also stepped down as chairman of Alibaba, the Chinese tech giant he founded, in September last year. SoftBank was not immediately available for comment when contacted by Business Insider.

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News of Ma's departure came just as SoftBank posted an annual operating loss of $13 billion.

Meanwhile, Softbank's vision fund posted a record $17.7 billion loss on Monday on the back of investments including WeWork, Uber, and Oyo.


Bloomberg reports Uber is responsible for roughly $5.2 billion of the SoftBank Vision Fund's losses over the last fiscal year, while WeWork totalled $4.6 billion and the rest of its portfolio made up $7.5 billion.

SoftBank's $100 billion Vision Fund, spearheaded by CEO Masayoshi Son, has had a rough year for its portfolio. WeWork's valuation has tumbled 90% from its peak following its botched IPO, and members of WeWork's board are now suing SoftBank for backing out of an agreement to buy $3 billion of WeWork shares as part of its bailout for the company.

With the onset of the coronavirus, many of SoftBank's investments are in fresh peril — Uber cut 14% of its worksforce earlier this month, and Business Insider's Julie Bort reports it expects to cut thousands more jobs on Monday as the pandemic recession bites.

Read the original article on Business Insider