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Report: Nomura to cut jobs in Europe to curb losses; shifts focus on US market


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According to Market Intelligence, April 2023

Report: Nomura to cut jobs in Europe to curb losses; shifts focus on US market

Nomura Holdings Inc. is planning to reduce staff at its European operations as it redirects its focus to more profitable hubs in Asia and the U.S., media outlets reported Dec. 27, citing CEO Koji Nagai.

The Japanese securities firm has been struggling to generate profits in Europe, and is looking for ways to cut costs and reverse losses, Bloomberg News reported.

Nagai said the region's 3,000 staff may be "a little large" given Nomura's plan to end the London office's status as a global booking hub. The London office will no longer handle global transactions, and will instead focus on the greater European region.

Nomura will also reduce the capital of its London unit to US$3 billion from US$5 billion, and will transfer about 50 to 100 people to its post-Brexit base in Frankfurt and to other areas in the continent.

Meanwhile, the group plans to grow its investment banking business in the U.S., which has the world's largest pool of investment banking fees, Reuters separately reported. It aims to focus on advisory and primary business, which are not subject to market risks. It also plans to expand its solutions business such as acquisition finance and foreign currency exchange services.

Nagai expects Nomura's expansion in client financing and solutions business in the U.S. and elsewhere to boost revenue by US$250 million in the medium term.

As of Dec. 27, US$1 was equivalent to ¥110.81.