The Children’s Hospital of Eastern Ontario said it plans to cut up to 50 positions to meet an $6.7-million shortfall in its 2015/16 budget.

The hospital said in a statement that it "expects that most of these reductions will be accomplished by attrition, voluntary retirement and reassignment."

CHEO said the provincial government's "ambitious plan to eliminate the provincial deficit" leaves the hospital without additional funding necessary to cover negotiated salary increases of up to 1.4 per cent for unionized employees.

CHEO said despite rising costs, the hospital's core funding has been frozen or reduced since 2012.

The hospital's $243-million budget must be balanced under law of Ontario hospitals, CHEO said.

"The CHEO team remains committed to meeting this challenge together and continuing to deliver the highest quality of patient care to its patients and their families," CHEO CEO Alex Munter said in a statement.

The hospital said it has 1,750 positions in total and expects to cut between 40 and 50 jobs.