HomeEconomyBBC to cut 500 more jobs in cost savings drive

BBC to cut 500 more jobs in cost savings drive

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The BBC is about to chop 500 jobs over the subsequent 20 months in a bid to save lots of 200 million kilos ($258 million) and turn into a “leaner, more agile organization,” the British public service broadcaster introduced Tuesday.

The redundancies, to be achieved by closing and transferring some roles and creating others in “growth areas,” are the most recent layoffs because the BBC copes with squeezed funding and inflationary pressures.

The broadcaster, which depends closely on an annual 169.50-pound license price paid by each U.Ok. family watching dwell channels on a tv, can be grappling with wider adjustments in media consumption corresponding to streaming and on-demand providers.

It will shed 500 jobs by March 2026, after already decreasing its headcount by 10% within the final 5 years – a discount of just about 2,000 roles.

Detailing the adjustments in its annual report printed Tuesday, the BBC mentioned the transfer was a part of “accelerating our digital-first approach to reach audiences where they are.”

“Over the course of the next two years, we will look to further move the money we have into the priority areas that provide real value for audiences,” it mentioned.

In his overview of the previous yr, director-general Tim Davie mentioned years of below-inflation license price settlements had “chipped away” at its earnings and put “serious pressure on our finances.”

Although inflation-linked rises have been reinstated, he famous the broadcaster had skilled a 30% actual phrases reduce from 2010 to 2020 and “a tough couple of years of flat funding.”

The BBC collected 80 million kilos much less in license price earnings within the final yr, pushed by a 2% decline in gross sales volumes and flat license price pricing.

The variety of lively licenses dropped from 24.4 million in 2022-23 to 23.9 million by the top of final yr, in keeping with the annual report.

“We need to create a leaner, more agile organization, and make the most of the digital-first opportunity to redesign our processes, cut costs and serve audiences better,” Davie mentioned.

“We also need to consider how best to fund the BBC in the long term to secure all the benefits of universal public service broadcasting in the future.”

The BBC chief mentioned that may additionally require discussions with the federal government concerning the “right way” to fund the BBC World Service at “a critical moment for democracy worldwide.”

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