Health chiefs have finally confirmed that about ten jobs will be axed at King Edward VII Memorial Hospital by the end of the year.

And they have admitted that morale among some staff at the hospital is at rock bottom because of the cuts.

The axe will fall on nursing staff as part of a massive management shake up at the hospital.

Yesterday Sheila Manderson, Executive Director of the Bermuda Health Board, confirmed that the jobs would go in a bid to slash spiralling health costs.

But she insisted that patient care would also improve following the restructuring programme, which will be implemented towards the end of the year.

Although the number of redundancies is only a ballpark figure, health chiefs estimate that about 40 posts will go -- although the restructuring programme will also create about 30 new positions.

But Ms Manderson said that it was still too early to say exactly how many jobs will go.

"I think we're looking at a deficit of about ten,'' she said.

"But it's still very difficult to say the exact figure. The final decision will be with the programme managers so the number is loose.

Ms Manderson also said that the motive behind the restructuring programme was a bid to save cash.

But she said the new system would also improve patient care, adding costs of care had soared in the last few years.

"I think this is something we have had to look at very closely.

Spokeswoman Kendaree Burgess-Fairn admitted that some staff disapproved of the plan but said that others found the prospect exciting.

"Some people aren't happy about it, others are and then there's a lot of people in the middle,'' she said.

The number of jobs to go, some of which could be phased out through retirements, is less than some staff at first feared.

A report by consultants Monahan and Associates recommended that 27.9 full-time salaries could be saved.