Nomura Holdings Inc. (8604) will lose four of its 12 investment banking jobs in Dubai as Japan’s largest brokerage seeks to reduce costs by $1 billion, according to a person familiar with the situation.
The job reductions include Scott Ferguson, head of investment banking in the Middle East and North Africa region, said the person, declining to be identified because the cuts haven’t been publicly announced.
The departures are part of Nomura’s plan to reduce costs by $1 billion, with almost half the savings coming from Europe. The revamp in strategy follows a four-year struggle to build a business overseas after the purchase of Lehman Brothers Holdings Inc.’s European and Asian units in 2008.
Scott Ferguson didn’t immediately return a message left on his work telephone. Takanori Kaneko, a Tokyo-based spokesman for Nomura, declined to comment. A spokesman for Nomura in Dubai, who asked not be identified according to company policy, confirmed a “handful” of people had been dismissed, declining to provide specific numbers.
Nomura last week cut a team of London proprietary traders focused on stocks, said two people with knowledge of the matter. The group of about five was part of Nomura’s Angel Lane Principal Strategies, a unit that makes wagers on markets with capital provided by the bank, according to the people, also declining to be identified as the cuts hadn’t been announced.
Middle East Cuts
The company said earlier this month it will reduce costs by $450 million in Europe and the Middle East, $210 million in the Americas and $340 million in Asia including Japan. About 45 percent of the cuts worldwide will be from trimming staff, with the rest coming from other operational expenses. The bulk of the job losses will be in investment banking and equities, it said.
Financial markets in the Middle East were hurt last year by Arab uprisings that ousted leaders in countries including Tunisia and Egypt and amid fears Europe won’t be able to contain its debt crisis, with banks including Credit Suisse Group and Nomura trimming their equities or equity research divisions.
Deutsche Bank AG, Germany’s biggest lender, has eliminated seven jobs at its investment banking division in Dubai, two people familiar with the plan said Sept 17.
Nomura tumbled 3.3 percent, the most this month and the first decline since Sept. 11, in Tokyo trading today, closing at 295 yen.