In the wake of Japan’s overseas bank crisis, the Mitsubishi UFJ Financial Group (MUFG) Inc. is set for major job cuts in London. MUFG has a repute of being the country’s largest lender and it offers voluntary redundancy packages to a group of 500 directors and managing directors in London. This figure makes up to a quarter of the city’s workforce.
MUFG has about 2000 employees in London with Europe, Africa, and the Middle East as other locations for its base operations. The firms offers services in capital markets, structured finance, and corporate finance. Previous reports suggest Japan’s expansion of its financial firms abroad in order to redeem the sinking interest rates and slow economic growth. However, the latest reports suggest the group is in a mode of cost-cutting. Nomura Holdings Inc. has curbed dozens of jobs in London this year in order to stabilize its overseas profit.
In a statement by a spokesperson from Tokyo based MUFG said, “We have implemented this voluntary retirement program to enhance our competitiveness given the severe business environment, such as persistently low-interest rates. We remain committed to London and the European region, and wish to make further contributions to this important market.”
According to reports, banks in the capital city of London are also planning to relocate its employees, for instance to Europe, which has been an anticipated decision in preparation of UK’s exit from the bloc. Reports suggest MUFG has set up securities and commercial banking businesses in Amsterdam.