The redundancies come despite the transfer of eight contracts to services company Mears, which KPMG say could save 600 jobs.
The administrators also said they were in 鈥渦rgent negotiations鈥� with Norwich council over two contracts including a notorious 拢17.5m deal agreed in December that was accused by rival bidders Morrison of being 鈥渁bnormally low鈥�.
As a result 300 staff on the Norwich social housing contract are currently in limbo over the future of their jobs. However, the second Norwich contract for waste, rubbish, recycling, street cleaning, grounds and tree maintenance will be carried out by Connaught Environmental, a division of the business that was not taken into administration.
The council said this morning it is 鈥渆leventh hour鈥� negotiations over the social housing contract and the leader of the council Steve Morphew said KPMG鈥檚 鈥渧ery tight timescale鈥� made it harder to secure a new deal.
鈥淥n the housing side, we are doing everything we can and are exploring a number of options. But the very tight timescale that the administrator has set means there are no easy solutions,鈥� Morphew said.
鈥淲e鈥檙e making real progress and this will help to further reassure residents - their bins will continue to get collected, streets will keep being cleaned, grass will be cut and emergency housing repairs will be completed.
鈥淭his deal would do a number of things - secure over 200 jobs, benefit a local contractor and put us on the right path to continue our discussions with the administrator,鈥� he said.
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