that they will be laid off over the next nine months.

But the mutual fund company's president, Finance Minister the Hon. David Saul, said every effort was being made to find employment for the staff members in other departments or at overseas Fidelity offices.

As revealed by The Royal Gazette last week, the fund accounting department is being transferred to Fidelity's UK offices.

Dr. Saul confirmed that mostly Bermudians would be affected -- some having worked at the company for more than ten years and others for just six months.

The move was a result of a recommendation by outside consultants, he said.

They found the firm's fund accounting was being conducted in three different places: Luxembourg, the United Kingdom and Bermuda.

After further studies, they determined the "most efficient, effective and cost beneficial'' place for it to be done was the United Kingdom.

"Bermuda is very expensive and salaries in the UK are obviously lower,'' Dr.

Saul said.

Staff had been aware the lay-offs might occur for six months, he added. And they were given generous financial leaving packages, including holiday pay, bonuses and pensions.

However, he sympathised with the employees, saying: "No one takes something like this well. They must be anxious not knowing what other jobs are out there.'' Fidelity, based locally in Pembroke Hall on East Broadway, now has a staff of 65. It is one of the largest exempted companies with a physical presence in Bermuda.