a result of increasing competition.

According to an insider, employees were told that critical to the company staying afloat, the Island Press must become a "meaner, leaner operation''.

Company chairman Randy French and top executive Gary Taylor explained that they have been losing more and more business to Bermuda Press -- publishers of The Royal Gazette -- and are able to undercut their quotes.

"The Bermuda Press have been able to offer quotes well below our rates,'' the insider said, "and we have just been losing too much work.'' Jobs axed in the downsizing included the production manager, pressmen, a driver and bindery personnel.

"The whole thing was done very well and they (Mr. Taylor and Mr. French) did it as nicely as possible,'' said the insider.

"We were all told, even those who were fired, that we are very well respected for our skills.'' In a prepared statement from the company, Mr. French pointed out that a total of seven jobs were eliminated. The seventh was a position that will not be replaced following a resignation.

"Among the seven jobs eliminated,'' said Mr. French, "two were held by permit holders and five were held by Bermudians.'' He also noted that the company acted within their union agreement.

He cited foreign as well as local competition as the problem.

"The problems of the printing industry have been discussed in the local press for many years,'' he said.

"Bermudian printers are not cost competitive with foreign printers and this, together with the easy file transfer to print centres overseas, has led to an exodus of print from Bermuda.'' "Price discounting on jobs remaining is severe and many of them are printed at less than profitable levels,'' he added.

"We have recently lost a number of large jobs to our competition and have no choice other than to restructure or right size our operations accordingly.''