Nomura has now confirmed that it will make cuts in both equities and investment banking, as it sets out to achieve an additional $1bn in cost savings in what is its second major restructuring of wholesale banking in the last 12 months.
Bloomberg reports that the firm aims to derive almost half of $1bn savings from Europe, where it lost the most money last year, as Japan’s biggest brokerage scales back its global ambitions.
The company will reduce costs by $450m in Europe and the Middle East, $210m in the Americas and $340m in Asia including Japan, Nomura said in a presentation to investors in Tokyo today. About 45% of the cuts worldwide will be from trimming jobs, with the rest coming from other operational expenses, it said.
The changes follow a four-year struggle to build a presence abroad, beginning with the 2008 purchase of Lehman Brothers' European and Asian units. Koji Nagai, 53, who took over as CEO from Kenichi Watanabe last month amid an insider-trading scandal, is pulling back after foreign operations reported nine consecutive quarterly losses.
Nomura is thought likely to start culling in Europe this month. No final decisions on total job cut numbers are thought have been made yet, but around 200 jobs could go in equities, including about 12 Managing Directors.
Hit the link below to access the complete Bloomberg article:
Nomura to Target Europe for Almost Half of $1 Billion Savings
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image: © Andreas Wieser
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