Davy to slash 75 jobs
Tuesday July 15 2008
LEADING firm Davy Stockbrokers is planning to cut up to 75 jobs in an attempt to reduce costs linked to the market downturn.
The largest stockbroking firm in the country has confirmed the move to slash 15pc of its 520-strong workforce and seek pay cuts from staff who survive as a direct result of difficulties in the international and domestic financial markets.
Details of the proposed cost-cutting plan will be determined after a meeting with staff. However, if the move goes ahead as expected, Davy said it will almost certainly include redundancies, affecting 10pc to 15pc of the 500 staff.
Any employee who does not lose their job may also suffer a 5pc salary drop if they are earning over €50,000 a year.
In a statement, Davy said: "The turbulence in international and domestic financial markets over the past 18 months has reduced trading volumes and there is a requirement to adjust the cost base in order to protect the profitability of the business going forward.
"Davy very much regrets the requirement to reduce staff numbers in the current environment. Davy will provide comprehensive outplacement support and related services including career counselling, job search training and pension advice."
In January 2007, managing director Tony Garry said the firm was aiming to double its profits to €100m within five years, driven mainly by the growth in its private clients business.
But after the financial market turmoil, job and salary cuts are needed if this aim is to be reached.
