blow after losing their jobs.

Resident manager Mr. Alan Lugo is quitting the hotel after 13 years.

Food and beverage manager Mr. Chris Williams is leaving after just one season.

The pair left the hotel at the weekend. It is not known whether they have found other jobs.

Yesterday the hotel's general manager Mr. George Robinson blamed the job cuts on the recession.

He said the hotel had to be restructured to meet tough economic times.

"We had to take a good, hard look at the conditions we found ourselves in,'' he said. "There is a continuing downturn. We have to restructure our business to live with the realities of the '90s.'' Mr. Robinson said it was thought the two managers' responsibilities could be reallocated to other employees.

"It was a very difficult and painful decision to make, but we had to accept and recognise what the status of our industry is.'' Mr. Robinson said Mr. Lugo's job had involved personnel and administration duties which would now be taken up by the accounts and payroll department.

Mr. Williams' job would now be done by the restaurant manager and chef.

Mr. Robinson stressed the job cuts did not reflect on the performance of Mr.

Lugo or Mr. Williams, a former manager of Pink Beach Cottage Colony.

And he refuted any suggestion they had been dismissed, adding: "Both left amicably.'' Mr. Robinson said he did not know whether the pair, both of whom have families, had found alternative employment.

"Like a lot of businesses we have had to streamline our operation, and become a lot leaner. We need to cope with the same volume of work but with fewer staff.'' Currently Grotto Bay has around 100 staff members, but the number fluctuates depending on occupancies.

Two years ago at the height of the season it had a 140-strong staff -- although the figure at around November was about 110.

"Many of the job cuts came through attrition,'' said Mr. Robinson.

Yesterday Mr. Williams, from Pembroke, declined to comment when contacted by The Royal Gazette .

Mr. Williams has wide experience in the hotel business, working in the United States and Europe.

Before joining Grotto Bay, he briefly ran Pink Beach Cottage Colony. He left Pink Beach at the end of February this year, however, and later filed a lawsuit against the company.

Mr. W.A (Toppy) Cowen, general manager of Pink Beach, said yesterday the writ had been settled.