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:

[liveblog]

Posted on Thursday, July 2nd, 2015 at 10:43 am by RadioToday

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