Embattled Southern Cross axes 3,000 care home jobs

Fresh fears arose for Britain's biggest care homes group Southern Cross today after it axed up to 3,000 jobs and continues to struggle for survival.

The announcement triggered renewed concern about the quality of care for the 31,000 elderly Britons living in Southern Cross' 750 homes as the company said "home managers, deputy managers and relief managers, activity coordinators and administrators" would all be saved from the knife, with ancillary staff taking the brunt of the cuts.

A company spokesman said it was "logical" to expect that most of the job losses at Southern Cross - which currently employs 44,000 people - would affect its lowest-paid staff.

"Until we go through the consultation period we can't be precise about job losses," a spokesman said. "However, the people who are responsible for managing care will be ring-fenced." Asked if he could rule out the possibility of carers and nurses losing their jobs, he responded: "There will be the right number of carers for each home."

The deal is part of Southern Cross's attempt to save £20 million a year from its staff bill. The company today claimed: "The process of consultation and the proposed reduction in staff numbers will not jeopardise the continuity or quality of care provided to the company's 31,000 residents."

Jamie Buchan, chief executive, added: "In today's announcement we are engaging with colleagues to put in place the best possible staffing model for our future needs ... during a very challenging time for both our company and the industry."

After Southern Cross admitted in February that it cannot afford its rent bills, some of its biggest landlords are working on a plan to see the company wound down.

The news came as a report by the public-sector union Unison said the UK's care industry was on the "brink of collapse".