- Japanese bank Nomura is cutting 103 jobs globally with the majority of cuts coming out of the lender’s London office. Staff will be told their fate today.
- The bank is cutting down its flow trading, foreign exchange, and emerging markets desks in Europe and the US.
- Nomura will also trim its Japanese retail bank branch network after it posted its worst results since the financial crisis in January.
Nomura is cutting 103 jobs globally as part of a strategic reshuffle. Staff affected will be informed of their fate today, a source tells Business Insider.
The bulk of the cuts will come in the lender’s London operations where its EMEA business is centered with flow trading, foreign exchange, and emerging markets desks being trimmed as part of the shift in strategy, according to people familiar with the matter.
In January, Nomura reported a net loss of 101.2 billion yen ($908 million) for the period from April to December last year, its worst performance since 2008.
The bank’s flow trading operations in EMEA comprises roles in Nomura’s global markets team that includes equities, fixed income, and currency trading, the majority of which is based in London.
Eight jobs out of a nine-person team have been cut in the bank’s equities research division in Singapore, which includes assistants and editors alongside analysts, according to an individual familiar with the matter.
The cuts will come in the bank’s international units, including the US, where the bank has been reporting losses for the past few quarters. Bloomberg has previously reported that the division has failed to generate returns since absorbing Lehman Brothers’ operations after the 2008 financial crisis. Much of Nomura’s massive loss was the result of impairments related to the bank’s US business, according to Nikkei Asian Review.
Nomura also reported that it will cut some 20% of its 156 strong Japanese bank branch network — previously considered unthinkable — as the bank’s traditional model struggles to generate returns, according to Nikkei Asian Review. Japan’s largest brokerage is looking to cut $1 billion in costs from its struggling wholesale business as part of the strategic change, according to presentation slides seen by Business Insider.
Nomura’s retail business suffered after individual investors sat opted to stay away from markets while the US-China trade war remains ongoing, according to Reuters.
The bank in 2016 shut down the majority of its cash equities operations in Europe.
Nomura declined to comment.
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