Irish brokers are cutting juniors

Ireland's stockbrokers have gone into 2009 in much the same way they ended last year - making redundancies and cutting pay. And it seems there's little reason for optimism about hiring going forward.

NCB Stockbrokers has revealed plans to cut a further 20 people, following on from the 10 redundancies in July last year. It also asked senior staff to take a 20% pay cut earlier in 2009.

All areas of the business will be affected, including wealth management, institutional equities, corporate finance, investment funds and debt services.

"NCB views the measures it is taking as a prudent response to the ongoing uncertainly and in the best long-term interests of the firm," said a spokesperson.

It's not the only one cutting back. Davy laid of 12 people in February and cut pay by 8% across the board. This is small fry compared to the 75 people axed in July last year though.

Goodbody also said it wasn't replacing staff that leave by natural attrition, which is rumoured to have led to the elimination of 30 roles.

Not surprisingly, many of those made redundant are facing a bleak recruitment landscape and are trying their hands elsewhere. John Mullally, senior consultant, banking and financial services at Robert Walters in Dublin, says the majority of the layoffs have hit those with less than five years' experience.

"They have been trying to reinvent themselves as buy-side analysts or generalist equity investment professionals. They have found the market very tough as the investment training they received in the stockbrokers was limited compared to what they would have got in a fund manager," he says.