Nomura cuts off round 10% of the London dealmaking workforce

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The Japanese bank Nomura has cut its London investment bank, which is supposed to meet up to 45 dealmakers. This makes it the youngest company to introduce layoffs after the coronavirus crisis.

The bank told employees plans to downsize its dealmaker team in London on July 28, according to two people familiar with the discussions, which affected around 10%. Nomura employs around 450 dealmakers in its investment banking unit in London.

Nomura’s London operation, headquartered on Angel Lane in the heart of the city, is apparently more affected than its US office, where “dozen” investment bankers have also been told plans to cut roles, Bloomberg reported.

The cuts affected all ranks apart from entry level analysts, according to one source. Nomura’s sector reporting team, which includes senior bankers in the telecommunications, media and technology and retail investment banking sectors, has been identified as affected.

Nomura declined to comment.

In May, Nomura CEO Kentaro Okuda, in a presentation to investors, stated that the bank would change its business to adapt to the new business environment and that it would re-prioritize regions and products.

In its latest quarterly results as of July 29, Nomura posted a profit of 16.5 billion yen in its investment banking unit, a decrease of 38% from the same period last year. However, operations in Europe, the Middle East and Africa saw improved sales during the reporting period.

The Japanese bank cuts follow a number of investment bank competitors who scaled back their business in the aftermath of the pandemic as merger and acquisition activity declined despite a rise in capital market fees.

Boutique investment bank Perella Weinberg cut 7% of its global workforce as part of a business overhaul, while Cantor Fitzgerald cut jobs in its offices, postponed the new analyst program and canceled the summer internship.

While most of the major investment banks halted downsizing during the pandemic, both HSBC and Deutsche Bank, which are overhauling their businesses and making thousands of layoffs, have resumed their cost-cutting programs in recent weeks.

In April last year, Nomura unveiled a $ 1 billion cost-cutting program focused on doing business with global markets in which Emea lost around 100 jobs.

To contact the author of this story with feedback or news, email Paul Clarke