Aloha United Way has laid off four full-time employees and will cut hours to its "211" confidential telephone service as a result of a decline in donations and a slumping economy.

The employees were terminated Friday and worked in AUW's marketing, 211 and information technology departments. The layoffs leave the nonprofit organization with 47 full-time employees, said Jody Shiroma Perreira, AUW spokeswoman.

Perreira said a major reason for the staff reduction was a $1 million shortfall in the 2007 fundraising campaign.

Susan Au Doyle, AUW president and chief professional officer, said 15 percent of the agency's operating budget comes from total revenues, and when contributions fall short, adjustments need to be made.

"If we have a shortfall in income, it's just like any other organization, unfortunately, and we've got to tighten up our administrative side in order to keep as much money going to the agencies as possible," Doyle said.

AUW distributes about $14 million each year to 62 agencies. But with the 2007 shortfall, AUW will be giving out more than $500,000 less this year than last year, Doyle said.

In addition to the layoffs, one of the biggest changes is the reduction in the 211 program from a "24/7" service to a Monday through Friday operation. Off-hour calls will be handled through voice mail and a call-back system.

The program offers confidential referrals on issues from crisis intervention and counseling to job training, education and childcare.

"While we are saddened to see employees go, the drop in our campaign donations and the current state of the economy made us look long and hard at our infrastructure here at Aloha United Way," Doyle said. "The changes, while difficult, will help us achieve our key priority of maximizing donor dollars going to community agencies. We wish our employees only the best in their future endeavors."

Reach Curtis Lum at culum@honoluluadvertiser.com.