Nomura to Scale Down Global Presence

Chief Operating Officer Atsushi Yoshikawa told investors that the firm will turn its attention to improving the profitability of wholesale banking, with fixed income figuring prominently. Also planned is a concentration of investment banking operations on the sectors of energy, financial institutions, funds, natural resources and retail. Joint ventures will be considered, he added, as a means of growing cross-border operations.

Cuts in the number of positions for managing directors and back-office personnel will take place in Europe, according to unidentified sources cited in the report. Staff from other divisions will be transferred to its fixed-income business, which is to be the focus of expansion around the world.

“There was a consensus that the cuts would center on Europe, but they’re smaller than we expected. It’s good to see the plans for substantial reductions in Asia as the region has been generating losses,” said Takehito Yamanaka in the report. Yamanaka, an analyst at Credit Suisse Group in Tokyo, was quoted saying, “Curtailing the job cuts and reducing operational costs instead eases concern about revenue dropping.”