UK pubcaster the BBC is to cut more than 1,000 jobs as part of a restructuring effort aimed at bridging the predicted £150 million (US$234.11 million) gap in license fee revenue for 2016/17.
The shortfall – which finds the license fee income for the period £150 million less than what was expected in 2011 – is due in part to the fall in household television ownership, the corporation said via a release on July 2, as consumers have taken to catching up on programs via iPlayer, mobile devices and online. The income shortfall has prompted further calls for the modernization of licensing fees to cover digital media.
The new measures, announced by BBC director general Tony Hall (pictured), will aim to cut costs by trimming more than 1,000 posts by merging divisions and cutting down management layers. The changes are expected to deliver £50 million (approximately US$78 million) in savings.
Furthermore, initial proposals will see the merger of technology teams across digital, engineering and worldwide, and the thinning of managerial layers from 10 in some places to a maximum of seven in the future.
Past savings at the BBC have come from the reduction of senior managers, combined with wage and headcount restraint, better property management and tougher procurement deals with contractors.
The pubcaster will continue to identify where specific savings opportunities lie throughout the summer, with final decisions expected by early fall.
“A simpler, leaner, BBC is the right thing to do and it can also help us meet the financial challenges we face,” Hall said in the statement.
“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 programs and content for all our audiences,” he continued.