SOUTHERN Cross Healthcare, which owns several local nursing homes, has announced it is planning to axe 3,000 jobs.

The failing care company, which runs Holbeche House and Wyncroft House in Kingswinford, Riverside, Wall Heath and Redbrick Court, Wordsley, is planning to axe the staff in October.

Chief executive Jamie Buchan said: "Southern Cross has a strong set of values and a clear vision to serve the care-related needs of elderly people in our society.

"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."

It is believed the brunt of the job losses will be cleaning and catering jobs and not nursing staff and centre managers.

However, Union leaders believe the company is on course to let down both its residents and staff.

GMB general secretary Paul Kenny said: "This is the start of a disaster for the residents as well as a kick in the teeth for the staff."

Christopher Fisher, chairman of Southern Cross, added: "Notwithstanding the current financial pressures, Southern Cross is in the process of transforming the quality of its business.

"There is a real momentum behind the ambition of our management team and there is too much of value within our business for it to be lightly discarded.”