Around 1,000 adviser jobs will be lost in 2010 as firms seek to make their business more profitable, according to Plimsoll.
The research firm believes IFA practices will experience a resurgence, but jobs will need to be lost if the sector wishes to remain competitive.
After the impact of the credit crunch and recession, IFAs have had a tough two years, Plimsoll says, but things are set to get better.
However, many firms are barely surviving the recession, according to senior analyst David Pattison, and consolidation will be a major theme in 2010.
This will help improve efficiencies, but is likely to lead to major job losses, he adds.
"Our latest analysis projects that a further 1,000 jobs will have to be shed if companies are to get back to profit and remain competitive in 2010," says Pattison.
"Whether through natural wastage or compulsory lay-offs, job losses are necessary. With the average sales per employee figure down to £87,000, employees need to ‘buy in' and contribute more to the recovery of their companies - if you still have a job expect to work much harder in 2010."
Plimsoll believes the market will strengthen through 2010, with 512 companies rated as strong in its latest report. These firms are expected to lead the recovery and take advantage of the opportunities on offer.
IFAonline readers are entitled to a £50 discount on the Plimsoll Industry Analysis - Independent Financial Advisors. Call 01642 626400 for further details and quote reference PR/FL36.
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