Nomura Holdings Inc., the firm that bought Lehman Brothers business after it entered into bankruptcy in 2008, will close its European equity trading business and slash an estimated 1,000 jobs in its U.S. offices.
After some very bad returns – Nomura is ranked 49th in trading and has 2.2 percent market share, according to industry observers – the investment firm is reportedly focusing on its core business. News reports say that Nomura officials will provide more details next week.
The slashing of trading jobs and closing entire trading operations is a trend that has been played out by struggling firms such as Barclays and Credit Suisse.
The greater trend here is that banks are consolidating back to their home markets where they are stronger and have greater presence, said Jonathan Chng, a senior analyst at East & Partners in Singapore, told Bloomberg. Post Lehman crisis, banks expanded their operations like wildfire. Now, amidst increasing stringent regulations on the finance industry, they need to plan carefully their next step.
Bloomberg also reports that Nomura will shutter equity research, sales, trading and underwriting for European stocks … The firm confirmed in a statement on Tuesday that it will close certain businesses in Europe and rationalize parts of its operations in the Americas.
The Japanese investment firm has roughly 3,433 staffers in Europe and 2,500 in the Americas, according to news reports. The New York Times reports that four years ago, Nomura announced$1 billion in cost cutsdue to business losses.
