Nomura to layoff up to 1,000 employees in London

TOKYO - Nomura Holdings Inc. will layoff up to 1,000 employees in London, less than three months after it bought big chunks of the global business of failed U.S. investment bank Lehman Brothers Holdings Inc.

Since Nomura's headline-grabbing move, the global financial crisis has taken a heavy toll on Japan's biggest brokerage just as it embarks on a major overseas offensive.

The job cuts decision follows an internal review of Nomura's equities and investment banking operations, it said in a statement Thursday.

"This will ensure that the company remains competitive in the current market conditions, and establishes the right cost base going forward," Nomura said.

The brokerage's president and chief Executive, Kenichi Watanabe, said last month there were no plans for layoffs.

Of the 8,000 former Lehman employees that Nomura added to its global payroll, about 2,650 are based in Europe and the Middle East.

Nomura currently employs about 4,500 people in London, and the cuts will not be limited to former Lehman staff, said Nomura spokesman Tohru Namikawa.

Reductions have already begun and should be completed within this fiscal year through March 31, he said.

Nomura's stock price has been pummeled this year and on Thursday fell 5 percent to 587 yen — a 26-year low.

The company stayed deep in the red during the July-September period, hit by deteriorating market conditions, trading losses and real estate write-downs. It is on track for a second consecutive full-year loss as it grapples with the $2 billion it expects to spend on integrating Lehman's operations in Asia, Europe and the Middle East.

To bolster its financial base, Nomura said earlier this week it plans to raise as much as 410 billion yen ($4.42 billion) by issuing subordinated bonds.

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