Up to three quarters of Nomura’s prime brokerage personnel in Europe have been axed as part of major cuts announced by Japan’s largest broker this week.

Speaking to Global Investor/ISF, an unnamed source said 75% of staff in the division have been told they will lose their jobs, with some already leaving the London office today.

The unit, which provides a bundle of services to hedge funds, is one of many to be cut or scaled back under plans to wind down equity research, sales, trading and underwriting for European stocks.

The Tokyo-based securities firm, which has struggled for years with its profitability overseas, said on Tuesday it will take "decisive action" in response to recent market volatility.

A former Nomura executive, who asked not to be named, told Global Investor/ISF: “The writing has been on the wall for some time as management had been concerned about the lack of profitability outside of Japan."

Although the extent of the cuts was surprising it is believed that there will not be an immediate shut down of the business, more of a wind down of operations. Either way, clients will ultimately have to find a new home.

For the business overall, 500-600 jobs will go in Europe, with other cuts in the Americas, separate people familiar with the matter said, declining to be named.

Overall, Nomura had over 3,400 employees in Europe and 2,500 in the Americas at the end of last year.

The firm's London-based cash equities execution platform Instinet will be unaffected by the cuts.

It comes as global investment banks have been scaling back their businesses as market volatility eats into revenues.

Banks such as Credit Suisse and Barclays have cut jobs and either shut or sold non-core business units in recent years.