London: Japanese banking major Nomura has axed about 50 investment banking jobs in Asia including India as a part of its cost cutting measures, says a media report.
“Japan’s Nomura, which last year acquired the bulk of Lehman Brothers Asian operations, has moved to reduce costs by cutting about 50 investment banking jobs in the region,” the Financial Times said.
Apart from India, other countries in the region which might have been impacted from the layoffs include — Hong Kong, Singapore, Australia and South Korea, the report said.
“The reductions are the most significant made since the Lehman acquisition and span Nomura’s non-Japanese footprint, with offices in Hong Kong, Singapore, India, Australia and South Korea sharing the pain,” the daily said.
Quoting people familiar with the matter, the daily added, the axe appeared to have fallen equally on both former Lehman and Nomura staff.
However, Nomura has declined to comment on the news.
The report stated that Nomura is downsizing employees in those businesses which have suffered acutely in the downturn, including leveraged finance and banking teams who deal with private equity deals.
The reductions also address personnel overlap, following the Lehman acquisition, in countries such as India, it added.
The report stated that Nomura secured the support of Lehman Asia’s management team last September by guaranteeing about 500 senior bankers two-year cash bonuses at 2007 levels. Some of those who lost their jobs on Wednesday formed part of this group and are expected to walk away with the two-year bonus as a lumpsum, it added.
Quoting one person close to the matter the Financial Times said: “Those going will get paid out their contractual entitlement. The Japanese are honourable employers.”
However, the payments would feed criticism that Nomura acquired Lehman Asia and its expensive bankers just ahead of a marked downturn in investment banking revenues, the report pointed out.