Online recruitment firm Stepstone will reduce staff at its Dublin and Belfast offices as part of a European-wide restructuring plan designed to cut mounting losses at the firm.

The company has also confirmed its Irish manager, Mr Oisin Mulcahy, is discussing terms on which he will leave the company.

It is believed Mr Mulcahy is not attending work following a difference of opinion regarding Stepstone's restructuring plan which will mean its Dublin office will be controlled by Stepstone UK.

"We are reorganising the company and people often take different views on that," said a Stepstone UK spokesman. "There will be job losses across the organisation including Ireland."

Mr Mulcahy was on leave yesterday and not available for comment.

Some 24 staff work at Stepstone's Irish operation following rationalisation at the company recently. It is thought at least five staff will lose their jobs in the review and possibly more.

Stepstone's reported losses from operations widened to #35.6 million ($31.1 million) in the three months to June 30th, compared with #34.8 million in the same period last year.

Analysts have indicated the company could run out of cash if it does not take swift action.

"My first impression is that it [the result] is very bad," said one analyst. He said Stepstone could have enough cash until the beginning of next year with its planned cost-cutting measures, coupled with a pick-up in business in Germany and Denmark.

Ms Karen Slatford, Stepstone's interim chief executive, told a teleconference yesterday the company planned to reduce its staff to 850 by the end of the third quarter from 1,073 in an effort to slash costs amid weakening market conditions in Europe.

"We have decided to take some action in the short term. We will continue to reduce our headcount," she said. Stepstone had cut its staff to 1,073 from 1,258 over the past three months.

Stepstone, which advertises thousands of jobs online, cited sluggish business conditions and restructuring charges for the widening loss.

"Bearing in mind the current market conditions, the board could see a need for further capital before the company reaches profitability," Stepstone said in a statement.