Nomura scales back US and European divisions

The Japanese investment bank is cutting staff within its international business, including a retreat from US and European leveraged lending.

Japanese investment bank Nomura Holdings announced it is scaling back its international wholesale businesses in Europe and the US.

The bank cited uncertainty in the global economy and the “extreme volatility” in the markets, as well as a decline in liquidity, as reasons for its international retreat in a statement issued earlier this week (12 April).

The cuts include Nomura’s leveraged lending activities in the US and Europe, according to Reuters.

“We are taking decisive action to refine the services we offer to our clients, while continuing to leverage our dominance and unique strengths in Asia, providing tailored solutions to our clients globally,” Nomura chief operating officer Tetsu Ozaki, said in a statement. 

The Wall Street Journal reports that around 500 jobs will be cut from the European side, which the firm said “will close certain businesses” in the EMEA region and 10 percent of the firm’s US workforce. Around two-thirds of the US staff that focuses on leveraged buyouts has been cut, according to Reuters.

The Japanese firm will present its full strategic plan on 27 April. 

Nomura declined to comment further.Nomura’s decision follows the recent announcement of Swiss-bank Credit 

Suisse, which said last month that it is exiting from the distressed debt space. Credit Suisse is planning to sell off its book of investments at a loss and is aiming to cull 6,000 jobs as a part of wider plan to save SFr 4.3 billion ($4.45 billion; €3.95 billion).