BackNomura India lays off investment bankers
Nomura India lays off investment bankers
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Mumbai: The Indian unit of Japan-based brokerage Nomura Holdings Inc. has laid off at least three senior investment bankers and some more people from its fixed income team, as part of the parent firm’s move to cut costs globally.
Nipun Goel, who headed the investment banking division, Indraneil Borkakoty, who headed the equity capital markets division, and a director have been recently asked to leave, said an executive at Nomura Financial Advisory and Securities (India) Pvt. Ltd, asking not to be identified.
Borkakoty, who had joined the company in August 2010, could not be contacted as his cell phone was switched off. Mint could not ascertain the name of the director.
Three other people in the investment banking team in India had been asked to leave in September, another company executive said last week, requesting anonymity.
“We are not providing details of individuals," Nandini Goswami, head of corporate communications, India, said in an email.
“However, at the time of its second quarter results, Nomura announced its intention to reduce its cost run rate by $1.2 billion, and we are in the process of executing that plan as quickly as possible," Goswami said.
Nomura Holdings posted a net loss of ¥46.1 billion ($591 million) for the three months ended September, compared with a profit of ¥17.8 billion in the preceding quarter.
The company lifted its cost-cutting target to $1.2 billion from the $400 million announced in July, which will likely lead to 100 more job cuts on top of the roughly 400 it set out to reduce in September, Reuters reported on 1 November.
Chief financial officer Junko Nakagawa had said 60% of its cost savings would come from Europe, where it is losing money and has 4,500 employees.
“We expect the tough conditions to continue," Nakagawa said. “These cuts are aimed at establishing a structure that can still respond even if the bad business environment remains intact for 18 months."
Nomura estimated its net country exposure in Europe at $3.55 billion. It said Italy accounted for about 80% of this and that most if its holdings were in government securities and in positions that matured in the next five months, Reuters reported.
The share price of Nomura Holdings, listed on the New York Stock Exchange, dropped 52% from its 52-week high of $6.75 to close at $3.23 on Tuesday.
Foreign investment banks in India have been facing a rough time lately. Barclays Bank India is laying off some employees as the Indian arm of the British bank is merging its corporate banking business with Barclays Capital, the investment banking unit, Mint reported on 15 July.
harini.s@livemint.com
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