Three large regions are to replace the nine local enterprise company areas which have been the building block of economic development in the Highlands and Islands.

Details were announced yesterday of the internal reorganisation of Highlands and Islands Enterprise, following the Scottish Government's decision in September to slim down the enterprise network.

The three regions, which will each have its own director, are Highland, to include the HIE offices in Caithness, Sutherland, Skye, Lochaber and the Inner Moray Firth; West, to embrace the Western Isles and Argyll; and East to cover Orkney, Shetland and Moray.

There are to be no compulsory redundancies but it is understood that 59 of HIE's staff have already chosen to seek voluntary redundancy. With careers staff moving to a new organisation and other functions going to local authorities, HIE's present workforce will shrink from 550 to about 350.

HIE chief executive Sandy Cumming said: "These management changes are absolutely the right ones to equip this agency with the best structure to take forward the government economic strategy.

"The Scottish Government has made it clear that HIE should focus wholly on our areas of highest expertise - sustainable economic growth and strengthening communities."

He added that he was confident the proposals would enable them to get excellent results in the future.