The Ottawa Hospital is cutting 290 full-time positions including both nursing and administrative staff, it was announced Wednesday.

The hospital's administration spent Wednesday morning notifying workers and unions about the pending layoffs.

The cuts were a result of a $31 million budget shortfall, the hospital said, out of a total budget of $1.04 billion.

The 290 full-time jobs include 90 nurses, 100 administrative staff and 100 people who are categorized as "other health professionals."

The hospital said that number will be taken from the current 7,700 full-time positions, saving nearly $22 million. The other $9 million in savings is expected to come from increased revenue and reduced supply costs.

The hospital said it would "redeploy as many employees affected as possible to the equivalent of 600 full-time positions that are vacant," and would also offer early retirement.

Budget promised cuts to Ontario hospitals

The layoffs come in the wake of last spring's Ontario budget, which promised new austerity measures for the province's hospitals.

The government announced plans to limit health-care spending increases to two per cent annually over the next three years.

The hospital has three campuses: the Civic on Carling Avenue, the General on Smyth Road and the Riverside on Riverside Drive.

According to the hospital's 2011-12 annual report, there were more than 12,000 staff members at the hospital, including more than 1,200 physicians and more than 1,700 volunteers.