(Bloomberg) -- Mizuho Financial Group Inc., the Japanese lender that has struggled to make its mark in Europe, has overhauled the leadership at its rates-trading business in London after disagreements on strategy and performance. 

Jason Cohen and Kevin Broughton, who both joined Mizuho as part of an effort to build the rates division, left in recent days, people familiar with the matter said. Andra Belcea and Yasuji Onozuka will become interim co-heads of rates derivatives trading as part of an overhaul that will “guarantee success,” according to an email sent to colleagues by Asif Godall, the Japanese bank’s head of markets for Europe, the Middle East and Africa. 

Mizuho’s rates traders in London lost about 1.7 million pounds ($2 million) in the first few weeks of this month, the people said, asking not to be identified discussing private matters. 

“The business has been suffering from a lack of external client flows and reduced affiliate flows and a challenging macro-economic environment” and is struggling to cover its costs, Godall wrote in his email. “We need to remedy this situation.” 

Gayle Rodrigues, a spokeswoman for Mizuho in London, confirmed the contents of the email sent by Godall and declined to comment further. eFinancialCareers reported the departures earlier. 

The departures mark the latest upheaval at Mizuho as the Tokyo-based bank attempts to build its business in London. Claus Jorgensen, the firm’s head of credit trading for the EMEA region, left earlier this year after his ties to scandal-ridden German real-estate firm Adler Group SA came under scrutiny.

Mizuho hired industry veteran Cohen in 2020 to lead the foray into so-called rates trading -- the buying and selling of government bonds and derivatives tied to interest rates such as swaps and futures. He tapped Broughton last year to oversee trading in U.S. swaps as part of a series of appointments.

But disputes flared over how best to expand, the people said, while the business also struggled to make money this year as soaring inflation upends the global economy and triggers wild swings in bond markets. 

The exits add to the staff turnover at Mizuho’s rates business since last year. At least seven other employees have left the unit during that period while the bank has made 13 hires, the people said.

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