Cognotec announces 30 job cuts in Dublin base

Dublin-based financial software firm Cognotec today announced it was cutting 30 jobs.

Cognotec chairman Mr Brian McCaba told

ireland.com

30 of the 125 staff in its Dublin office were being laid off because of the downturn in the global economic climate.

Another 20 jobs will also be cut from the company's 10 international offices in Europe, Asia and the US.

But the job cuts would not curtail the company’s core research and development programmes, said Mr McCaba. The job cuts are across all sections of the company.

Set up in 1991, Cognotec develops software for banks and foreign exchange customers. The software automates internal and customer banking transactions and is available through own-branded Web delivery.

The firm had set a goal of signing 100 major banks to its software by the end of this year.

But Mr McCaba said changing economic circumstances meant this target had not been achieved and as a result the company had to restructure. About 60 banks are using the firm’s technology. Mr McCaba said the firm is confident of two high-profile additions within weeks.

"Our strategy will focus on meeting the needs of our existing partners. The global organisation we built was focused on reaching certain targets. The current climate means we will have to cut back and reduce our expectations," he said.

The company recently set up a joint venture in Korea with Japanese Internet investment group Softbank Finance Corporation.

Softbank has invested $60 million into Cognotec over two years, boosting its stake in the firm to 31 per cent.