Nomura Holdings Inc., which is the largest securities firm in Japan, will be cutting 30 managers from its fixed income division, in an effort to promote growth.
Bloomberg reported that the changes come three months after the appointment of Steve Ashley as global head of the division. Nomura is on a cost-cutting drive, looking for $1.2 billion in cost cuts after its expenses rose dramatically in the wake of its 2008 acquisition of Lehman Brothers Holdings Inc.’s Europe and Asia businesses.
In January Nomura saw the resignations of Jesse Bhattal, former deputy president and chief of wholesale banking, and Tarun Jotwani, who had led the global markets unit prior to its split.
In a memo to employees, Ashley said that Kieran Higgins, co-head of fixed income for Europe, the Middle East and Africa, and Peter Hornick, head of fixed income sales for the Americas, would both be departing. He added that Georges Assi will become sole head of fixed income in Europe.
Ashley was quoted saying, “These changes will help drive the next phase of our growth in global fixed income. We have a lot to achieve and I look forward to working closely with the new management team as we shape the future strategic agenda of our global business.”
In the three months ending Dec. 31, income from the division was down 1% from a year earlier to 71.2 billion yen ($860 million). Net income from the wholesale business more than tripled to 37.8 billion yen.