Combating waste and improve the cost-effectiveness of the bank’s daily operations over the next three years.
The code name chosen for Nomura’s latest cost-cutting drive indicates how strongly its chief executive sees the need for savings at Japan’s largest brokerage.
Bloomberg News reports that after slashing hundreds of overseas jobs since April, CEO Koji Nagai has unveiled his so-called 'Waterline Project', which will attempt to combat waste and improve the cost-effectiveness of the bank’s daily operations over the next three years.
'The waterline on a warship will rise a centimeter each year if the crew brings excess baggage', Nagai said in an interview in Tokyo. 'Before you know it, the ship will sink'.
Cost-cutting has been a feature of Nagai’s four years at the helm of Nomura, and his latest initiative comes after this year’s restructuring in Europe and the U.S. to trim $700 million of expenses. Global banks such as Goldman Sachs. are also finding ways to curb spending in an industry that’s become less lucrative since the global financial crisis.
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