The HSE West has confirmed that the contracts of 30 agency nurses will not be renewed in Sligo General Hospital next week.
The Irish Medical Organisation has condemned the decision by the HSE.
In a statement issued this evening, the HSE said that nursing numbers in Sligo have increased in the recent past and this measure is designed to bring the hospital's approved nursing staff numbers and funding back in line.
Four temporary consultants positions will also not be renewed. The HSE says they were put in place for specific reasons and it was never intended that they would become permanent.
The HSE says Sligo General has been providing services above targeted levels and as a consequence above the funding levels for 2007 in such areas as elective surgery.
The statement concludes that all emergency and acute services continue to be a prioritised and every effort is being made to ensure that the high quality of patient care delivered at the hospital is maintained.
The statement makes no reference to the impact on services of these cuts but nursing and medical staff agree it will impact on frontline services.
Consultant Tim O'Hanrahan said it would impact on all frontline services including breast cancer care.
The consultants whose contracts are not being renewed include one general surgeon, one ENT specialist, one orthopaedic surgeon and one locum obstetrician.
All those areas will be affected according to Mr O'Hanrahan - some clinics will not be held, surgery lists will not be covered and waiting lists will grow he said.
The IMO President, Dr Paula Gilvarry, said the decision is completely unacceptable and will cause outpatient appointments and clinics to be cancelled and longer waiting lists for patients.
The IMO is calling on the HSE to reverse its directive and for management in Sligo General Hospital to change its decision.