HUNDREDS of care home jobs in Scotland are at risk after the UK's largest operator announced plans to shed 3000 staff.

Southern Cross Healthcare, which employs 44,000 people at more than 750 homes across the country, said proposals to sack 7% of its workforce were essential to tackle “staff effectiveness”. The redundancy process is expected to be complete by October, according to a statement released yesterday.

A spokeswoman declined to comment on how the cuts would affect homes north of the Border, where it employs about 5000 people, but it is likely that more than 300 posts could go. The company runs 98 care homes in Scotland, including 14 in Aberdeenshire and 12 in Glasgow.

Southern Cross said managerial posts, activity co-ordinators and administrators would not be directly affected by the cuts.

Unconfirmed reports yesterday suggested more than 300 nurses and 1200 care staff were facing the axe. It is also understood that almost 700 catering posts will be lost, as well as 440 domestic jobs and 238 maintenance posts.

The move was criticised by unions, with GMB general secretary Paul Kenny describing it as a “disaster for the residents as well as a kick in the teeth for staff”.

Unison condemned the accounting process that has sparked the funding crisis at the company. General secretary Dave Prentis said: “This is another nail in the coffin for privatisation. Whilst big city backers and company bosses have made off with tens of millions of pounds, vulnerable elderly people and care staff are paying the price. Losing your job in this economic downturn is a tragedy, and for elderly people to have the huge worry of losing their homes is a disgrace.”

It came as the union published a report revealing that Four Seasons – the UK’s second biggest care provider – is also in severe financial difficulties. If both Southern Cross and Four Seasons were to collapse, about 1150 nursing and residential care homes would be at risk of closure – affecting nearly 50,000 vulnerable people and their families, and 60,000 staff.

Scottish Health Secretary Nicola Sturgeon said: “We have sought urgent clarification from Southern Cross about its restructuring proposals and what the implications are for the care homes and staff in Scotland.

“Our priority is to ensure provision for the care and welfare of all residents remains in place with minimum possible disruption. We are working closely with Cosla to ensure this continuity of care.”

Scottish Labour health spokeswoman Jackie Baillie said the cuts would hit quality of care at a time when the sector is under unprecedented scrutiny.

She said: “This is all about shareholder profits, not care of our older people.”

Southern Cross warned it was in a “critical financial condition” as it unveiled a £311 million loss in the six months to March 31, and is underpaying its rent by nearly a third until the end of September while it tries to find a long-term solution to its woes.

Staff and residents have also faced speculation that as many as 200 homes could be closed or offloaded to other operators.

Consultation on job cuts has now begun with Southern saying it is committed to working with unions to minimise redundancies.

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.”