Clerical and administrative staff at the Royal Cornwall Hospital have had their redundancy notices withdrawn.
Their work could have gone to India in an effort to cut down the hospital's deficit of £31m.
The idea was subsequently rejected because the results were not good enough and new chief executive John Watkinson has apologised personally to staff, and described the way they had been treated as "poor."
He said managers would take a more inclusive approach to industrial relations in future.
Unison spokeswoman Christine Dayus said Mr Watkinson told staff he was sorry they had been put in such a position.
The financial deficit of the Royal Cornwall Hospital Trust has not gone away but Mr Watkinson said he was anxious to work with staff and explore some suggestions raised during the consultation period.
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