Duncan McGhie has come under fire over restructuring

Duncan McGhie, who has chaired both Scottish Opera and Scottish Ballet for the past five years, had indicated his intention to step down by next spring.

The move follows months of turmoil at Scottish Opera which recently announced that a total of 88 posts are to be cut from the workforce of just over 200.

A restructuring plan, to be completed by June 2005, is to be followed by nine months with no full-scale productions.

The debt-laden opera company had asked ministers for extra funding, but was told money would only be available for restructuring.

The Scottish Executive said it would continue to invest in Scottish Opera subject to the management ensuring that strong financial planning controls were in place.

'Tangible sign'

The company had been receiving £7.5m a year, but argued that it was too small a sum of money for a company of its size.

Mr McGhie said difficult decisions had to be made and the efforts of the executive were "a tangible sign" of its commitment to opera.

But unions said management was to blame for not cutting costs sooner and argued the package was simply killing the company.

Technicians union Bectu called on the board to resign.

Performers' union Equity said it was appalled by the restructuring plans.

Mr McGhie stayed in post and insists his decision to resign was one he had made long ago.