Dublin-based financial software firm Cognotec will cut 50 jobs worldwide as part of a cost reduction programme. The company employs more than 200 people, of which about 125 are based in Dublin. Approximately 30 jobs in Dublin will be cut.

In a memo to staff, Cognotec founder and chairman, Mr Brian Maccaba, blamed the cutbacks on the firm's failure to reach its target of selling software to 100 banks by this summer.

"We built a global sales organisation, and a cost structure to match, based on the 100 bank goal. We now have to readjust this cost structure to an ongoing basis, which retains a focus and priority on new product development and customer support, but which presently has 40 per cent less live clients; this therefore requires a similar reduction in costs," he said.

Cognotec currently has 60 banks live on its AutoDeal product platform. It has signed letters of intent with a further 30 banks. Its software automates internal and customer banking transactions and is available through own-branded Web delivery.

But new sales were being affected by the downturn in the global economic climate, according to Mr Maccaba.

"The global economy is turning quite negative. Having said that, when you sell technology to banks, and when that technology is helping them save money and reduce headcount, in some cases we are doing more business. But that's mostly from existing clients who understand how the technology works, so they will buy additional licences. In terms of brand new customers making purchasing decisions, we do expect that to slow down," he said.

The cuts will be made across all areas of the company, Mr Maccaba said.

But he added that there would be no cutbacks in the firm's research and development capability. Cognotec's release of its Lite 3 product would go ahead as planned later this year and its investment in its new Matrix platform, due to be launched next year, would continue, Mr Maccaba said.

He added that Cognotec, which already cut 20 jobs earlier this year, would not close any of its offices worldwide. It has offices in Dublin, London, New York and a joint venture in Tokyo. It also has a smaller presence in Paris, Frankfurt, Vienna, Chicago and San Francisco. In March it formed a joint venture operation in Korea with Japanese internet investment group Softened Finance Corporation. We're slimming down, but we're still staying on the map," said Mr Maccaba.