Business / Corporate

Nomura to reduce outlets in Japan by 20%

JIJI

Nomura Holdings Inc. said Thursday it will reduce the number of its sales outlets in Japan by at least 30, or 20 percent of its 156 domestic outlets, as part of structural reform measures.

The brokerage giant aims to cut operating costs by a total of ¥140 billion by the end of March 2022 from the level four years before.

Nomura will mainly consolidate outlets in the Tokyo metropolitan region whose sales areas overlap.

The company hopes to restore its earning power by reviewing its cost structure.

The brokerage industry faces a rapid change in the domestic business environment due to the aging of customers and the development of digital technology.

Nomura hopes to improve the efficiency of outlets located close to each other, as well as those sales bases hit by a decline in customer visits, which is due chiefly to the popularity of online trading and other services.

Nomura Securities Co., the core unit of the holding company, will review its staffing of some 3,000 sales personnel over several years.

As for overseas operations, the Nomura group will focus resources on the United States and the growing markets in China and other Asian countries while scaling down its operations in Europe.

Nomura Holdings is trying to improve its profitability after suffering a group net loss of ¥101.2 billion in the April-December period last year, against a profit of ¥196.6 billion a year before.

At a briefing for investors, Nomura Chief Executive Officer Koji Nagai said his company is facing an urgent need to become a company that can adapt to a new era.