Cognotec email gives mixed messages

The email read: "Having now completed this phase of investment and development for this product, we are now moving into a go-to-market phase. As a result, we have realised the need for a strategic review of the organisation's structure and its resource requirements in line with our business plan. Our focus will centre on offering solid support for our clients, while bringing new and innovative technology solutions to market.

"As a result of this review we have had to make some tough decisions, and our restructure has required us to reduce our headcount in some areas, our RealStream development area in particular."

The company laid off around 40 employees last week, including sales staff. Recently hired deputy chief executive Bernadette Cullinan is also understood to have left. She only rejoined the company in September last year, having previously worked for Cognotec in 1983 as financial controller.

Cullinan was hired to devise and implement the strategic direction of the company through its upcoming crucial growth phase, the company said at the time. So why has she left? Cognotec policy prevents it from commenting on employees' individual situations.

The redundancies echo those made in August 2001 by the Dublin-based technology vendor. That year Cognotec cut some 50 jobs, which it reportedly said was due to a downturn in the economic climate, and to banks' prudent approach to IT investment.

But right now, the climate is not so bad. According to client strategy firm, ClientKnowledge, by 2010 banks will spend around $750 million, of which around $600 million will be disbursed to technology providers. So is there any need for sizeable cuts?

In the email, the vendor also said the AutoDeal+ platform is "central to our strategy", and that it will be maintained alongside the RealStream platform. "Our focus for AutoDeal+, based on feedback from our clients, will be on improving quality, performance and stability."

At the same time, a spokesperson confirmed that Cognotec will continue with plans to integrate its existing capabilities in e-FX – including pricing and execution engines, multi-channel connectivity, Liquidity Linq and a white-labelling solution – into the RealStream platform