Darlington based care home group Southern Cross Healthcare has today announced plans to cut upto 3,000 jobs.
Southern Cross employs more than 200 people at its base in Archer Street, Darlington, and 6,000 across 100 North-East homes, and 44,000 across its 750 UK homes.
It comes after the firm said earlier this year that it will use fewer agency staff and ask staff to be flexible about working between different homes, in measures expected to save £4m.
Southern Cross, which rents the majority of its homes after selling most of its properties and leasing them back, has been hit by rents rising faster than the income it receives for people's care.
The Darlington-based firm, responsible for the care of 31,000 predominantly elderly people, has blamed these rising rents for placing it in a "critical financial position".
It has been trying to renegotiate the rents with its landlords since September.
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