Nomura Tightens Belt Further: Aims for $186 Million in New Cost Cuts

Nomura Holdings has announced plans to implement an additional $186 million in cost reductions as part of CEO Kentaro Okuda’s ongoing efforts to restructure the company and enhance profitability.

The Tokyo-based brokerage revealed in its latest presentation that the new measures will focus on revamping IT infrastructure, advancing digitalization and automation, and reassessing office locations. These steps are intended to streamline operations, though no specific timeline was disclosed.

This initiative builds on a previous cost-saving plan introduced last year, which aimed to trim approximately $410 million through a mix of short- and medium-term strategies. Most of those measures, including a revamp of the domestic wealth management unit, were completed by March, underscoring management’s persistent drive to control expenses despite a recent earnings recovery.

Okuda is set to address investors during a question-and-answer session following his speech at Nomura’s annual investment forum in Tokyo.

In the presentation, Okuda highlighted the company’s progress in strengthening profitability, attributing the improvement to favorable market conditions that have boosted performance across various business segments. However, Nomura has recently faced significant challenges, including regulatory fines for market manipulation and a high-profile incident involving an employee accused of robbery and attempted murder at a client’s residence.

The firm’s renewed focus on cost efficiency reflects a commitment to navigating these hurdles while positioning itself for sustained growth in a competitive financial landscape.

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