Joining the wave of SoftBank-backed tech companies that are cutting back on staff is Fair.

The car leasing company just announced via memo that it would be laying off a whopping 40 percent of its workforce in a move to prop up profitability. The exact number of dismissed employees weren't disclosed by CEO Scott Painter. This comes just a month after it received $500 in loans from Mizuho Corporate Bank and Softbank.

Painter's brother Tyler Painter, the Chief Financial Officer of Fair, is among those employees getting the boot and will be replaced by Kirk Shryoc, as reported by TechCrunch.

"With the help and guidance of our leadership team, I've decided to focus the company's resources on strengthening Fair's core technology and reducing costs associated with the capital-intensive supply side of our business," said CEO Painter in his memo."

"Going forward, Fair will be a smaller team, focused on doing fewer things well. As part of the process of achieving profitability, we're reducing our headcount across the business."

Uber and WeWork
Fair is just one of the startups backed by Softbank that announced massive layoffs recently. Uber sacked 350 employees last week, ramping up the total number to 1,000 this year. Another one is WeWork that fired 500 employees earlier this October but is reported to axe 4,000 jobs, according to the Financial Times.

These are just some of the companies Softbank has invested in that are struggling to churn a profit. When asked why the Japanese conglomerate's Vision Fund is investing in unprofitable tech companies, the fund's managing partner for EMEA and Asia Munish Varma had this to say in April, "We look for businesses that are addressing very significant pain points."

Varma explained that the fund invests in businesses that make sense and is not too focused on profit.

Best Workplace
Ironically, Fair was listed among Inc.com's 346 best places to work in 2019, citing perks like free snacks and meals, flexible schedules, no dress code, free beer, and kombucha and unlimited paid time off as a few reasons why they're a great place to work in.

But the layoffs proved that those perks wouldn't last for at least 40 percent of Fair's employees.

"These types of changes are painful, as I know from my previous experiences building companies. Our leadership team is responsible for the long-term sustainability of Fair, and no matter how difficult these decisions are, we believe they are the right steps in ensuring we have a bright future as a company. We thank you for being on this journey with us," said Painter.

Masayoshi Son transformed software firm Softbank into a powerful tech investor that backs some of Silicon Valley's most well-known start-ups
Masayoshi Son transformed software firm Softbank into a powerful tech investor that backs some of Silicon Valley's most well-known start-ups AFP / Toshifumi KITAMURA
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