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© Reuters.File photo: French robot Pepper detects whether people are wearing masks, and if not, instructs them to wear masks. It was exhibited at SoftBank Robotics, a French robot developer in Paris, because the coronavirus disease (COVID-19) continues to spread
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Sam Nasi
Tokyo (Reuters)-According to sources and documents reviewed by Reuters, SoftBank Group is cutting jobs in its global robotics business and has stopped producing its Pepper robots because the group has reduced its industry ambitions.
According to three sources and documents familiar with the matter, the production of the humanoid Pepper was touted as the first robot with a “heart”, but production was stopped last year. Two sources said that the cost of restarting production will be high.
Pepper was built by Foxconn in China to help solve the labor shortage problem, but it is difficult to find a global customer base. One of the sources stated that only 27,000 vehicles were produced.
The callback reflects that CEO Masayoshi Son’s plan to make SoftBank a leader in the robotics industry and produce humanoid machines that can provide services to customers and take care of children is fading.
According to four sources and documents, as part of the layoffs, SoftBank plans to cut about half of its 330 staff positions in France in September, thus cutting into the historical core of the business, which originated from SoftBank’s 2012 acquisition of French robot Company Aldebaran.
Three of the sources said that half of the employees have been laid off from smaller sales operations in the United States and the United Kingdom, while employees in Japan have been redeployed from the robotics business. All sources declined to be named because they are not allowed to speak to the media.
A SoftBank spokesperson said that in France, negotiations for layoffs are ongoing, and the final figure has not yet been determined. The spokesperson said that American and British employees were also fired and redeployed in Japan, but declined to provide further deals.
The French robotics business said in a statement that SoftBank “will continue to invest heavily in next-generation robots to provide services to our customers and partners.”
The French business website Le Journal du Net reported on the layoffs in France for the first time. Reuters reported for the first time a broader reorganization.
cultural conflict
SoftBank Robotics launched the full-featured Pepper in 2014, and it became the spokesperson of the corporate group, reflecting Sun Zhengyi’s optimistic vision for a technology-driven future when establishing overseas investment businesses.
Three sources said that behind the scenes, the cultural conflict between French companies and Tokyo management has damaged the development of robots, and its sales have been affected by its limited functionality and unreliability.
SoftBank supports Pepper’s sales by placing robots in its mobile phone stores, and has shifted its focus to products such as the cleaning robot Whiz. Three sources said that French companies are increasingly marginalized.
This conglomerate has been selling assets, including most of its stake in the robotics company Boston Dynamics, because Sun Zhengyi is more focused on investing through the Vision Fund.
The 63-year-old billionaire made a fortune by selling mobile phone contracts and investing in start-ups. He described SoftBank as “the capital provider of the information revolution.”
SoftBank retains its business in robotics and automation technology, owns SB Logistics and holds shares in robotics company Berkshire Gray and warehouse robotics company AutoStore.
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