• Kyodo News

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Foreign financial institutions cut their workforces in Japan by 4,315 employees, or 15.5 percent of the estimated total workforce of 27,819, during the 15 months to March, according to a recent survey by a consulting firm.

After expanding their businesses here, foreign financial firms are being forced to review their operations, Tokyo-based Executive Search Partners Co. said.

The collapse of U.S. brokerage firm Lehman Brothers Holdings Inc. in September accelerated the wave of job cuts, leading to about 2,000 reductions in the three months to mid-December. From then until the end of March, foreign financial institutions are estimated to have slashed 1,000 jobs, according to the survey.

Of the total cuts, 58 percent were made in “global markets” divisions dealing with financial products such as stocks and bonds, and around 20 percent in “commercial banking” divisions dealing with loans.

Nearly 65 percent of the people who lost jobs belonged to U.S.-based financial institutions, highlighting the severity of the financial crisis.

Executive Search Partners said it is likely foreign financial institutions will go ahead with further massive job cuts.

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