Sheffield Homes could axe 200 staff over 18 months

Council housing specialist Sheffield Homes will axe 200 staff over the next 18 months if it cannot reduce costs.

The firm said 100 redundancies would be made by March 2009 and another 100 by March 2010 if it could not slash costs or boost income.

Consultations with unions began on Monday and will start with staff next week.

A Sheffield Homes spokesman told the BBC: “We need to change the way Sheffield Homes delivers its services in order to respond to growing financial pressures and to build a sustainable business that continues to deliver excellent services for future generations.

“These financial pressures have arisen from a combination of factors including the complex way that we are funded and the current economic climate.”

He said the firm was committed to meeting the governments Decent Homes 2010 target, despite the redundancies.