Health workers in Guernsey have received a letter telling them that services could be cut next year.
Each employee received the letter from the health and services minister explaining the situation.
Dr Hunter Adam warned that Guernsey faced an £8m shortfall next year and must "tighten its belt".
The board is reviewing all areas to see where savings can be made, but a reduction in services has not been ruled out.
In the letter Dr Adam said he did not envisage redundancies, but if services were cut or reduced staff would be deployed elsewhere in the health service.
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