BBC to cut 1000 jobs to cover licence fee shortfall
BBC to cut 1000 jobs to cover licence fee shortfall
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BBC to cut 1000 jobs to cover licence fee shortfall

A thousands jobs are expected to be cut at the BBC due to a shortfall in its licence fee income, DG Tony Hall has announced to staff this morning.

Whilst there’s been no specific mention of cutting jobs from radio, the Director General wants to merge technology teams across Digital, Engineering and Worldwide saying further changes are also possible.

Tony Hall also announced plans to reduce the number of layers from the top to the bottom of the organisation. In some places there are currently 10 layers of people and management and this will be cut to a maximum of seven in the future.

He said “A simpler organisation will inevitably require fewer managers, especially at senior levels.”

The licence fee income in 2016/17 is now forecast to be £150m less than it was expected to be in 2011. This is because as more people use iPlayer, mobiles and online catch-up, the number of households owning televisions is falling.

Throughout the summer, the BBC will be identifying where the specific savings opportunities are with final decisions expected to be taken in early autumn.

Hannah Maundrell Editor in chief of money.co.uk comments: It isn’t a big surprise that fewer households are watching live TV. Savvy consumers have cottoned on to the fact they can avoid the £145.50 TV licence fee by watching catch-up. With superfast broadband delivering programmes to our many devices in moments, and on-demand viewing better suiting our busy lifestyles; it’s a trend that will only continue.

“A simpler, leaner, BBC is the right thing to do and it can also help us meet the financial challenges we face. We’ve already significantly cut the costs of running the BBC, but in times of very tough choices we need to focus on what really matters – delivering outstanding programmes and content for all our audiences,” Tony said.

Here’s how the live blog went earlier today:

10.52

624 (1)

10.51

The new measures being proposed will help bridge that gap by delivering £50m in savings from merging divisions, cutting down management layers, reducing managers and improving processes. More than 1,000 posts will be lost as a result.

Hear more radio industry news like this at the top of the hour on inRadio - the radio industry's very own radio station. Listen now in a new window whilst you continue reading RadioToday or press play below.

10.51

No solid news about where the jobs will be going from, but at the same time there’s been no specific mention of radio stations losing staff

Hear more radio industry news like this at the top of the hour on inRadio - the radio industry's very own radio station. Listen now in a new window whilst you continue reading RadioToday or press play below.

10.49

Here’s his quote from the press release: Tony Hall said:

“A simpler, leaner, BBC is the right thing to do and it can also help us meet the financial challenges we face.

“We’ve already significantly cut the costs of running the BBC, but in times of very tough choices we need to focus on what really matters – delivering outstanding programmes and content for all our audiences.

Hear more radio industry news like this at the top of the hour on inRadio - the radio industry's very own radio station. Listen now in a new window whilst you continue reading RadioToday or press play below.

10.49

Tony wants to simplify and standardise procedures across the BBC, particularly looking at how professional and support areas such as marketing and communications, finance, HR, IT support and legal are structured and can be simplified.

Hear more radio industry news like this at the top of the hour on inRadio - the radio industry's very own radio station. Listen now in a new window whilst you continue reading RadioToday or press play below.

10.49

The licence fee income in 2016/17 is now forecast to be £150m less than it was expected to be in 2011. This is because as more people use iPlayer, mobiles and online catch-up, the number of households owning televisions is falling.

Hear more radio industry news like this at the top of the hour on inRadio - the radio industry's very own radio station. Listen now in a new window whilst you continue reading RadioToday or press play below.

10.48

Tony Hall wants to cut out management layers to a maximum of seven. Some have as many as ten!

Hear more radio industry news like this at the top of the hour on inRadio - the radio industry's very own radio station. Listen now in a new window whilst you continue reading RadioToday or press play below.

10.47

The BBC’s technology, engineering, and digital teams are being merged together

Hear more radio industry news like this at the top of the hour on inRadio - the radio industry's very own radio station. Listen now in a new window whilst you continue reading RadioToday or press play below.

10.46

The drop in income is largely related to a decrease in people paying the £145.50 annual licence fee

Hear more radio industry news like this at the top of the hour on inRadio - the radio industry's very own radio station. Listen now in a new window whilst you continue reading RadioToday or press play below.

10.45

Tony Hall is giving a speech to staff via an internal broadcast to simplify the BBC. He says the corporation will save £50m a year as a result of restructuring

Hear more radio industry news like this at the top of the hour on inRadio - the radio industry's very own radio station. Listen now in a new window whilst you continue reading RadioToday or press play below.

0 11 5466 02 July, 2015 Industry News, Today 10:43 am 20157 Thursday, July 2nd, 2015

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