redundant in an effort to streamline the firm's operations, the company announced yesterday.

Managing director Mr. Fred J. Finley said the reason for the move was because the skill level of the staff has risen steadily in recent years while the amount of work has decreased.

Mr. Finley said since the company stopped writing non-GTE policies, there has been "very little turnover''.

The firm was formed as a captive reinsurer, and wrote open market property and casualty treaty reinsurance until 1989. Currently, GTE RE reinsures parent risks only.

Mr. Finley said he hoped the move would give remaining employees "better jobs'', with a greater variety of assignments and a more challenging workload.

Seven of the dismissed workers were not given any notice of the redundancies, and finished up their employment yesterday.

Mr. Finley explained that GTE RE has adopted a general policy of giving employees three months' salary in lieu of a termination notice under such circumstances.

The remaining pair, who are managers, will stay on for an additional two months.

Most of the employees had been with the company for three years or more.

Expressing regret that the loss of such "experienced workers'' was necessary, Mr. Finley said he was positive each one would be able to find employment despite the current economic troubles. He said GTE Re would be "rendering them assistance where possible''.

GTE Reinsurance is a wholly-owned subsidiary of GTE Corporation. GTE is a multinational corporation, operating in 41 countries.