Staff at 101 Prospect Mount Road care home were told by North Yorkshire County Council last month that the facility, which cares for elderly and vulnerable residents, faces closure.
A consultation has been launched and a decision will be made in the new year.
The residential care facility, owned by county council, currently cares for around 30 residents providing short stay and respite care as well as facilities for people suffering from dementia and a few long-stay beds.
But the council say the facility, which was built in 1970, is “no longer fit for purpose to deliver the required standards of care facilities that people expect today and it no longer meets the council’s vision of promoting independence and choice.”
A spokesperson for the council said: “The standard of care at the facility is not in question and has been rated good by the Care Quality Commission, but it is in the poorest condition of the county’s in-house remaining residential provision.
“As such, it is not possible to provide greater independence and choice for users and is not fit for purpose to deliver the required standards of care in the future.”
Adding that staff currently working at 101 Prospect Mount Road would be given support to secure alternative employment.