Ireland has so far been spared any deep-cutting redundancy announcements in the financial services sector, but Dublin’s International Financial Services Centre (IFSC) should be preparing itself for big job losses, according to one top banker.

Speaking at the Irish Banking Federation conference, Citibank Europe’s chief executive, Aidan Brady, said cost-cutting businesses might be tempted to move their operations to lower-cost locations, which would mean swingeing redundancies.

Ireland has so far this year been the beneficiary of cost cutting, as its 10% corporation tax has lured financial services firms away from the UK. The Henderson Group announced plans to move its headquarters to Dublin in September and believes others will follow in its footsteps.

Brady didn’t state how many of the 25,000 people currently employed in the IFSC could be for the chop, but said it needed to prepare for a changing financial landscape.

“The IFSC needs to embark on an intense marketing campaign and broaden its product range,” he said.

Recruiters tell us that some people are already quietly being laid off in Ireland, or that firms are simply not replacing employees who leave.