Two meetings were held last month at which staff at the North Bridge hotel were told cuts needed to be made and that management would determine those eligible for voluntary redundancy.
Last month the Evening News revealed how workers received a letter to state their wages may not be paid on time because of a “challenging trading period”.
The hotel, which has a workforce of about 160, is part of the JJW Hotels and Resorts group, which is in turn part of MBI International, headed by Saudi billionaire Sheikh Mohamed Bin Issa Al Jaber.
A staff member, who asked not to be named, said: “There is a lot of uncertainty and disruption in the hotel. Harmony has completely gone and the staff have lost all faith within the company.
“When questions arise regarding anything to do with the company and pay, I do not believe anybody in the business believes anything they are told, as they have been lied to so many times and promises not kept.”
The worker, who attended the redundancy meeting in the hotel’s Link Later Suite on March 24, added: “They said cuts will definitely be made and there is a strong possibility of losing a department too. They did not say who will be going but said they would accept and look into any voluntary redundances if you fitted their criteria.”
Fears have also been raised about the hotel’s ability to honour future bookings such as weddings and conferences.
One woman, whose daughter has paid a £1750 deposit for her September wedding has baulked at the hotel’s request for a further £2500 payment, amid the growing uncertainty.
Hotel management have declined to comment on the current situation despite being contacted by the News.
In a letter to staff last month bosses said they expected the situation to improve over the next three months – after kitchen staff had staged a stoppage because their wages had not been paid.
The hotel – which has 56 rooms and 12 suites – was opened in 2001 by the newly formed Scotsman Hotel Group in the building which used to house the Evening News.