Mitsubishi UFJ Financial Group Inc. is preparing major job cuts in London, another sign of the deepening troubles Japan’s banks face at their overseas operations.
MUFG, the country’s largest lender, is offering voluntary redundancy packages to about 500 directors and managing directors in London, according to an emailed statement. That’s roughly a quarter of its workforce in the city.
Japanese financial firms have been expanding abroad to make up for a squeeze on profits from rock-bottom interest rates and slow economic growth at home. Now they’re in cost-cutting mode, with Nomura Holdings Inc. eliminating dozens of jobs in London this year as the nation’s largest investment bank tries to return its overseas operations to profit.