Shares of Nomura Holdings, Inc. (ADR) NMR were trading higher by more than 7 percent Tuesday morning following reports the company is planning to cut jobs in North America.
Bloomberg, citing "people with knowledge of the matter," reported that a head count reduction follows similar moves by Credit Suisse and Deutsche Bank.
Bloomberg added that cutting jobs in the U.S. market signals a reversal from the Japan-based firm's commentary in December that it plans on actually hiring new positions in the Americas. The company's CEO even said there was "still potential for growth in the Americas" as the firm ii targeting to double its investment banking revenue in the region over the next three years.
However, Nomura's operations in the Americas has been unprofitable as the company reported a pretax loss for the six straight quarters. Meanwhile, Bloomberg reported back in March that revenue from trading and deal making will fall in the quarter.
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