BBC to axe 500 jobs in attempt to save £200million for ‘transformation’

The announcement comes as the BBC is already attempting to save £500million as part of a plan announced two years ago.

Leigh Tavaziva, chief operating adviser said "significant activity” is already under way to make the corporation “more flexible”.

She said: “In March this year we announced a requirement for an additional £200 million of savings and reinvestment plans to drive the continued transformation of the BBC.

“This will support greater investment into premium video content and further develop our digital capabilities.”

She added: “To further build our digital capabilities, whilst targeting efficiencies, over the next two years we will continue to close and transfer roles in some areas and create new roles in growth areas.

“This will result in a forecast net reduction of 500 roles in the public service by March 26, with further growth in targeted areas planned in our commercial group."

To support these changes BBC has announced it is launching a new voluntary redundancy scheme for staff.

The news comes as the BBC publish their Annual Report and Accounts today.

The BBC Group have also admitted to a “decline” in viewers purchasing a TV Licence - which the company uses to fund production of its content.

It said: “While licences in force declined by two per cent year-on-year, the vast majority of our audiences remained committed to paying the licence fee and 95 per cent of public service spend was directed to content and its delivery.”

As the take up of the licence fee has dropped, the Group have seen less funding for its services.

The report said: "In real terms, the licence fee generated 30 per cent more income in 2010/11 than it does today – a difference of more than £1 billion a year.

“We have been clear that the significant funding pressure we are under means we need to make further savings, on top of the major savings and reinvestment we have already made, to deliver the most value for audiences.”

The existing fee agreement expires at the end of 2027 and the end of the current BBC charter.

In 2023, the licence fee income dropped to £3.47billion.

The BBC licence fee increased from £10.50 to £169.50 in April - a move that was widely criticised.