Nomura to cut 500-600 jobs in Europe cash equities pullback: Sources

A man walks past a signboard of Nomura Securities outside its branch in Tokyo, Japan, on Feb 2, 2016.
A man walks past a signboard of Nomura Securities outside its branch in Tokyo, Japan, on Feb 2, 2016.PHOTO: REUTERS

TOKYO (REUTERS/BLOOMBERG) - Nomura Holdings plans to cut between 500-600 jobs, mainly in its European cash equities business, as Japan's biggest brokerage tries to stem losses incurred in its long-term drive to become a major global industry player, people familiar with the matter said on Tuesday (April 12).

Some jobs will also go in Nomura's global markets division in the Americas, the people said, without elaborating. They declined to be identified because they were not authorised to speak to the media.

The firm will shutter equity research, sales, trading and underwriting for European stocks, according to another person.

Nomura may also dismiss about 20 per cent of its workforce in North America, people with knowledge of the situation said last month.

Nomura, which had 3,433 employees in Europe and 2,501 in the Americas as of Dec 31, has been considering overhauling its overseas businesses since chief executive officer Koji Nagai in February postponed a goal to earn 50 billion yen (S$621.3 million) of pretax profit abroad.

Kenji Yamashita, Nomura's Tokyo-based spokesman, declined to comment on the reorganization in Europe.

Shares of Nomura extended gains, climbing as much as 7.4 per cent in Tokyo trading, the most in almost two months. The stock was up 6 per cent at the midday break, paring this year's decline to 30 per cent.

Global investment banks including Credit Suisse Group are cutting jobs as market volatility and low interest rates curb trading. Wall Street firms are poised to post lower revenue from trading and dealmaking for the first quarter of 2016.

Nomura reported a 50.6 billion yen pretax loss at its European operations for the nine months to Dec 31. The brokerage last posted an annual profit outside of Japan in the year ended March 2010.

The firm has gone through a series of expansions and contractions outside of Japan over the years. It bought bankrupt Lehman Brothers' European and Asian operations in 2008, only to pare back operations in the regions later, after costs and losses swelled.