The owners of the iconic Caledonian Waldorf Astoria Hotel in Edinburgh's West End say the need to lose 65 full time posts to cope with the impact of coronavirus lockdown.
In a further blow to the capital's tourism industry, Hilton said it would need to reduce the hours of a further 135 jobs at the landmark five star hotel.
The hotel has 290 staff including some casual workers.
The consultation process, which started on Monday, will end in September.
A Hilton spokeswoman said: "Covid-19 has created unprecedented challenges for our industry and with social distancing measures and travel restrictions remaining in place, it is unlikely we will get back to normal operations for some time.
"As a result, we are having to make some very difficult decisions about our future structure.
"We have worked hard to minimise the impact on jobs so far, but we have been left with no choice but to resize and restructure the team at The Caledonian.
"Over the coming weeks, we will be discussing future plans with our team members so that we can hear their views and minimise the impact on jobs as much as possible."
The hotel was constructed between 1899 to 1903 and overlooks Edinburgh Castle.
Grace Kelly, Elizabeth Taylor, Charlie Chaplin and Sir Sean Connery are among the famous guests to stay at the upmarket hotel.
Hilton said it would begin holding weddings and conferences again "as soon as" Scottish government restrictions were lifted.
