(Adds Nomura’s global business in fifth paragraph.)
Nov. 25 (Bloomberg) -- Nomura Holdings Inc., Japan’s largest brokerage, started cutting jobs in its home market by eliminating at least 15 positions, said two people with knowledge of the matter.
The brokerage last week informed about 15 employees in Tokyo, who worked at equity-related businesses in the global markets division, said the people, declining to be identified as the matter is confidential. It may cut more jobs at the unit and eliminate positions at its investment banking operation, one of the people said.
The move underscores Tokyo-based Nomura’s determination to reduce annual costs by $1.2 billion, mainly from Europe, and avert a potential downgrade by Moody’s Investors Service. The ratings company said this month it may lower the brokerage’s credit rating after reviewing losses from its capital markets activities and expense-reduction program.
The firm has no plans to cut jobs at its retail unit, one of the people said. Nomura spokeswoman Keiko Sugai declined to comment.
Nomura posted a loss of 46.1 billion yen ($596 million) in the three months ended Sept. 30, the first in more than two years. Pretax losses from overseas businesses swelled to 52.4 billion yen, the biggest in at least six quarters.
Europe, Asia Cuts
Nomura, which bought Lehman Brothers Holdings Inc.’s Asian and European units in 2008, said this month that it would consider eliminating jobs in markets including Japan and Europe.
In Europe, Nomura cut eight fixed-income jobs as part of plans to reduce costs, two people with direct knowledge of the matter said last week. The departures included Laurent Bilke, the global head of inflation strategy, and Sean Maloney, a fixed-income strategist, said the people, who declined to be identified because the moves aren’t public.
In Asia, three of Nomura’s most senior executives in India are leaving the firm, three people with direct knowledge of the matter said last week. Nipun Goel, head of investment banking for India, and Indraneil Borkakoty, who runs the firm’s local equity capital markets business, are departing.
Shubham Majumder, Nomura’s chief telecommunications, media and technology banker in India, is also leaving. Two other employees based in the Mumbai office are also leaving, said the people, who declined to be identified because the moves aren’t public.
Nomura Chief Financial Officer Junko Nakagawa said earlier this month the company is “examining the appropriate size” for operations given the current environment, adding that about 60 percent of the latest expense reductions will be in Europe. Nomura will trim as many as 400 jobs, mainly in Europe, two people with knowledge of the matter said in September.
--With assistance from Ambereen Choudhury and Gavin Finch in London and Ruth David and George Smith Alexander in Mumbai. Editors: Chitra Somayaji, James Gunsalus
To contact the reporter on this story: Takahiko Hyuga in Tokyo at firstname.lastname@example.org
To contact the editor responsible for this story: Chitra Somayaji at email@example.com