SOUTHERN Cross Healthcare has revealed plans to cut 3,000 jobs in the latest blow to staff at the crisis-hit care homes operator.

The company, responsible for looking after some 31,000 residents, said the move is essential to address "staff effectiveness" across its 750 homes.

Southern, which employs 44,000 staff, said the proposals to slash the workforce by nearly 7 per cent are part of its programme of change launched 18 months ago.

The company operates homes across the area including Marlborough Court and Brook House Care Centre in Thamesmead, Lauriston House and St Raphael's in Bromley, Greenwich’s Cedar Court, Alexander Care Centre in Lewisham and Catford’s Beechcroft Care Home.

It recently warned it is in a "critical financial condition" as it unveiled a £311m loss in the six months to March 31, and it is underpaying its rent by nearly a third until the end of September in a move to buy it time to find a longer-term solution to its woes.

As well as uncertainty over the future of the firm, staff and residents have faced speculation that as many as 200 homes could be closed or offloaded to other operators.

A process of consultation has begun on the job cuts as well as the potential implementation of a "standard contract of employment" for new and existing staff.

Southern said it is committed to working with the GMB trade union to minimise redundancies, and it expects the whole process to be completed by October.

The company said home managers, deputy managers and relief managers, activity co-ordinators and administrators will not be affected.

However, sources told the Press Association more than 300 nurses and 1,275 care staff are among those set to lose their jobs, along with almost 700 catering posts, 440 domestic jobs and 238 maintenance posts.

Jamie Buchan, Southern Cross chief executive, said: "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."

Paul Kenny, general secretary of the GMB trade union, said: "This is the trigger for the Government to step in with immediate financial support to ensure that Southern Cross continues to operate and continues to provide a home for 31,000 elderly and vulnerable residents looked after by 44,000 staff.