Yeah, sounds familiar. It's a tough situation. There's really no way around it that doesn't have some risks. If you're honest with your boss, you risk being fired for sticking your neck out. If you try and inflate hours too much, you risk getting fired for lying. You do nothing, you risk getting fired for "underperforming." In a perfect world, you just point out what you just said to me and let management figure it out, but that's not likely to make you any friend in the long run. I'd start shopping around for jobs, not because you're for sure going to be fired, but it would be good to know if you have options. Remember, your company won't reward you for loyalty. If your job becomes redundant/unnecessary, you'll be fired no matter how well you do. Just make sure you don't give them a reason to fire you with cause.