Thousands of families and employees have been left in limbo after one of Australia's largest childcare operators announced it's closing 40 centres across the country. 

G8 Education says it's grappling with numerous challenges - from cost pressures to falling birth rates and "serious child safety incidents" that have led to a collapse in occupancy.

The sector has been embroiled in scandal over the last year following reports of abuse, predatory employees and other serious safety risks, which has led to scores of centres closing their doors.

• GUEST: Dr Caroline Croser-Barlow, CEO The Front Project
• PRODUCER: Brooke Young