The decision means some staff will have to be redeployed

It is the second operating area to be closed at St Michael's Hospital in Hayle and a ward could also be closed.

The Royal Cornwall Hospitals Trust said it always intended to close them as part of plans to claw back part of its projected �31m budget shortfall.

But staff told the BBC they were "dismayed" by the announcement made at a meeting on Wednesday morning.

The staff believe that that they have been made casualties of mismanagement Christine Dyan, Unison

Christine Dyan, regional officer for the union Unison, said: "They are very upset and that is quite understandable.

"The staff believe that that they have been made casualties of mismanagement."

On Tuesday managers and board members at the hospital trust were severely criticised by a team of financial experts for their handling of the financial problems.

Price Waterhouse Coopers said the trust "lacked transparency" in its reporting of the scale of cash problems.

The trust said in a statement that the move was to make "the most efficient use of the resources".

It said there would be no reduction in services for patients as their care would be transferred to West Cornwall Hospital in Penzance or Royal Cornwall Hospital in Truro.

A "small number" of theatre staff would have to be redeployed.

It said: "The closure of a theatre now does not pre-empt any decision on its (the hospital's) long-term future.

"In the meantime, the two remaining theatres on the site will stay open and the very high standards of care provided by the hospital will continue to be a vital part of the planned surgery the trust's offers."