Southern Cross plans to slash 3,000 jobs

Troubled care home operator Southern Cross today announced plans to slash up to 3,000 jobs as part of a staffing restructure designed to improve performance.

The cuts represent 7% of the company’s 44,000 workforce, which is spread across 750 care homes, most of which are leased from other organisations.

The news comes with the operator teetering on the brink with many landlords looking to reject its decision to cut rents by 30% from June to September in order to stabilise its financial position.

The company said today’s decision was part of its New Horizons programme to improve performance, and would be accompanied by a standard contract of employment for new and existing staff and the introduction of new care roles.

“In today’s announcement we are engaging with colleagues to put in place the best possible staffing model for our future needs, and one which fully embraces the best practice available to us,” said chief executive Jamie Buchan.

“In developing this model during a very challenging time for both our company and the industry we are determined that the process we undertake should be exemplary in terms of staff communication.”

The move is likely to draw a stinging response from the GMB union, which represents a quarter of the Southern Cross workforce and has been heavily critical of its business practices.

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