Nomura plans to cut an estimated 500-600 jobs, mostly in its European equity research division whilst many jobs in the UK and US will also go as Japan’s largest brokerage faces ongoing profitability issues with its international businesses according to sources familiar with the matter.
The news appears to be another hindrance for the company as it attempts to reach the heights of other global investment banks especially after its purchase of the Lehman Brothers’ Asian European operations.
Many other big banks and brokers have faced issues due to slow trading volumes and increased costs amid volatile global markets. Already Barclays has shut its cash equities division in Asia whilst Standard Chartered closed its cash equities business and Societe Generale shut its India equities research.
Nomura has faced numerous strategic mistakes after it was involved in an insider trading scandal in 2012 which tainted the firms name. Since its acquisition of Lehman assets it has cut costs in the range of $2 billion leaving barely anything of the Lehman business remaining.
According to sources the broker is planning to target European equity research operations and London is expected to be one of the locations most heavily affected by the “strategic assessment”. Nomura is expected to reduce its European equity derivatives business and streamline its US business.
Whilst Nomura plans to only release further details of its assessment when it reports its full year results on March 31st sources have said it is expected that around 10-15 percent of Nomura’s 3,433 staff may lose their jobs.
Following the release of the news on Tuesday Nomura shares rose as high as 7.4 percent in Tokyo.