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What’s happening at Nomura?

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.

Comments (12)

Comments
  1. you meant Nomura’s Chief exec……

  2. Ah yes – thanks. Amended it.

    Sarah, Editor, eFinancialCareers Reply
     
  3. and no one thought this would happen !!!!!! chaos would appear to reign at Nomura…bring in the mormon looky likeys in one door and let your own staff out of the other !!!

  4. Legacy Nomura staff should be pride to have the chance working w/ prestige & most outstanding ex-Lehman colleague. Almost ALL Legal N are not qualified even to have interview at Lehman before its collapse

  5. okura,

    with such “outstanding colleagues” Nomura may have the same good fortune as Lehman.

  6. It is important to note that the Equities and Investment Banking divisions, that were taken over by Nomura, were neither responsible for bringing the bank to its knees, nor the global banking crisis, and associated losses. These were both profitable areas of the business and were market leading in terms of product, people and technology, which is why their value was bought by Nomura. As for compensation packages, the guarantees are not across the board and none are longer than 1 year.

  7. new partner…beg to differ…can name at least 2 units that went to Nomura that were most definitely down on the year.(if not the decade) and as for max 1 yr guarantees..also wrong..there are a number of longer guarantees Equities…true not their fault..

  8. to idbgeezer…

    that will happen, if no active sign of revenue generation by either ex Lehman or old Nomura by march 09

  9. The Nomura / Lehman deal could may already look like a train wreck. Lehman thrived in a bull market by aggressively using its balance sheet and being ultra aggressive in pricing. Those days are gone and without this, the Lehman guys suddenly don’t look so great. There are some very smart people for sure, but there are also plenty who will simply not cut it in the new world without aggressive pricing behind them. Factor in the reality that there are some very high quality Nomura people who are understandably unhappy about the lack of parity between them and ( in some cases ) some pretty average Lehman guys on guarantees – and you have a recipe for law suits when the lay-offs kick in… This could get very messy !

  10. keep missing these LEH praises… lets be clear LEH was / has always been second tier poorly managed bank and just surfing boom leverage era… barclays / nomura made terrible mistakes as with little bit of vision they would have seen what was coming and just had to wait for hiring much better people at GS or MS which wil be firing >20% in 09…

  11. okura, thats a shameful and childish comment, besides, it lacks thought. I would exclude some of ex-Lehman staff especially the very recent intake, however a collection of the more experience staff must take responsibility and admit that their actions and poor judgements lead to the demise of their former employer. So tell me okura, will you feel honoured to be working side-by-side with someone whose competencies you doubt.

  12. Sarah,
    Cn we go out for drinks?

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