What's happening at Nomura?

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It seems that the worst may be coming to pass at Nomura in London. After hiring in 2,500 staff from Lehman in September, insiders say the Japanese bank is now trimming between 500 and 700 of its 3,000 people in the City.

HR staff at the bank are said to have met employee representatives earlier this week to discuss the redundancy plan. The equities business is expected to be the most severely impacted, with cuts predicted before Christmas.

Jobs are expected to go in IT and operations in 2009.

Nomura staff are said to be understandably disgruntled by the alleged developments. "Lehman bankers have been granted generous packages and generous guaranteed bonuses which have left them immune to potential layoffs," says one.

Employees are apparently all the more miffed because Nomura's chief exec recently told Bloomberg there were no plans for significant job cuts.

Jason Kennedy, managing director of search firm Kennedy Associates, says redundancies in London are inevitable: "They have got overlap with the Lehman boys. As with most other firms, they probably feel that now's a good time to clean the house."

Nomura didn't immediately return calls asking for comment.