Japan’s Nomura to make more European job cuts
To recoup losses on global financial markets, Japan’s biggest investment bank, Nomura Holdings, is reportedly planning to cut jobs in Europe.
This is part of a plan to consolidate less profitable markets, and instead focus on operations in Asia and the US.
Currently, it has 3,000 staff in the European region. CEO Koji Nagai said the downsizing is vital to bolster the firm’s top line and reduce its costs.
He said the firm intents to channel an increasing number of resources to the US, where the potential fee pool is bigger.
Nomura has had difficulties making money in Europe since its acquisition of Lehman Brothers in 2008.
The firm’s difficulties in Europe have been further compounded by Brexit. The bank posted a pretax loss of ¥16.8bn (US$151 million) in Europe in the first half of the current fiscal year.
Due to a fall in fixed-income trading, Nomura’s wholesale banking revenues also decreased by 29% from a year earlier.