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April 5, 2019

Nomura plans job cuts in $1bn turnaround strategy

Japanese brokerage Nomura is set to cut jobs as part of a $1bn cost-cutting drive for its wholesale business.

The firm expects to attain the $1bn cost reduction target over the medium term. The bulk of the cuts are expected to be completed before next March.

The downsizing exercise will be carried out across various markets, though London is said to be significantly affected by the move.

In its third fiscal quarter, Nomura’s wholesale unit reported a pre-tax loss of JPY95.9bn ($859.1m) compared to a profit of JPY14bn in the previous year.

The group performance also suffered.

In the third quarter of the fiscal year ending 31 March 2019, the group posted a net loss of JPY95.3bn versus a profit of JPY88bn a year earlier.

The group net revenue slumped 36% to JPY260.6bn on a year-on-year basis.

Meanwhile, Nomura also plans to close at least 30 of the firm’s 156 domestic retail brokerage branches.

The firm will now prioritise Asia and the Americas while scaling down its European business.

The latest move comes shortly after Nomura received the regulatory approval to launch its securities joint venture (JV) in China.

The company will reportedly partner with Orient International for the JV.

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