SAN JOSE — The high-ranking city official who was escorted by security out of City Hall last week will remain on the payroll — but he has been terminated from his old role and given a huge pay cut in an unusual shake-up that grew even more mysterious Monday.

Alex Gurza, who had served as the San Jose’s top labor negotiator during its contentious battles with its employee unions over pension reform and other key issues, had made $222,921 a year as a deputy city manager, one of the top appointed positions in City Hall.

On Monday, city officials disclosed that Gurza started work in a much lower position: as an entry-level analyst in the Parks, Recreation & Neighborhood Services department making $64,459 a year — a 71 percent pay cut.

Gurza said City Manager Ed Shikada relieved him of his duties Thursday but gave him no reason, and he has no idea why he was escorted out of the office by two city security officers — a rare practice for the city.

“Security escorts are normally used if there is reason to believe there is a concern related to workplace violence or other safety concerns, which is absolutely not the case in my situation,” Gurza said. On being fired from his old job, he said: “If I could summarize my reaction in one word, I think it would be ‘shock.’ “

City spokeswoman Lenka Wright said Monday that because it is a “personnel matter,” the city could not provide any details on why Gurza was ousted from his old position after 3½ years or why he was escorted by security. When the security escort was first reported Friday, Shikada’s office would only say that Gurza was “out of the office” and that his employee relations duties had been temporarily reassigned.

Without union representation, Gurza could be axed from the deputy city manager’s role for no reason. But having previously been a union-represented employee, he was automatically offered a replacement union job, though Shikada gave him the lowest possible slot, an entry-level position Gurza held when he was first hired by the city 20 years ago. Gurza said he took the replacement job for at least the time being while he ponders his future.

His demotion appeared sudden; in an agenda released Friday, Gurza is still listed as the chief negotiator for an employee bargaining session set for Tuesday morning.

It could be the start of a long-expected shake-up at the top of City Hall. The City Council on Tuesday is set to discuss the fate of San Jose’s top appointed official, and Gurza’s old boss, Shikada, and he, too, may be replaced.

It’s long been believed in San Jose political circles that Shikada, who took over the day-to-day operations of the city a year ago this week, has been filling the role only on a temporary basis until after the November election, when the new mayor and City Council can tap their own city manager. The city manager also appoints other department heads who could be replaced, including the chiefs of the police and fire departments.

Sam Liccardo replaces termed-out Mayor Chuck Reed on Jan. 1, and will be joined by four new council members, with a fifth coming after a special election later in the year.

Contact Mike Rosenberg at 408-920-5705. Follow him at Twitter.com/RosenbergMerc.