BBC said it will cut up to 2,000 jobs as part of efforts to reduce costs by about 10% of its annual budget, a move it described as its largest staffing cuts in more than a decade. The broadcaster said it made the announcement during a call with staff and that it expects the savings target to be reached over the next two years.
The BBC said the plan is aimed at saving 500 million pounds ($677 million), roughly equivalent to about a tenth of its annual budget. It said the bulk of the cuts are expected to be carried out in the fiscal year beginning April 1, 2027.
Interim Director-General Rhodri Talfan Davies wrote to staff that the BBC “creates real uncertainty,” while saying the organization wanted to be open about the “challenge” it faces. Davies said the reductions are driven by inflation and pressures on income from the license fee and commercial activities, along with broader strain linked to a turbulent global economy.
The BBC said it had previously reported “substantial financial pressures” and that it wanted to cut about a tenth of its budget by 2029. It also said the job cuts come as former Google executive Matt Brittin is scheduled to take over as director-general next month.
Brittin is expected to fill the vacancy left after Tim Davie stepped down, and after head of news Deborah Turness resigned over a misleading edit in a documentary about U.S. President Donald Trump’s speech on Jan. 6, 2021, before Trump’s supporters stormed the U.S. Capitol. The BBC is also facing a legal dispute in which Trump is suing it for $10 billion for defamation.
The BBC is funded by an annual license fee paid by U.K. households that watch live television or any BBC content. In addition to the fee, the broadcaster also earns commercial income, and the BBC’s planning for staffing changes reflects the pressures on both streams as it navigates changing viewing habits, including digital streaming and the rise of households that no longer have television sets.
While the center-left Labour government has pledged to ensure the BBC has “sustainable and fair” funding, it has not ruled out replacing the license fee with another model. The BBC was founded in 1922 as a radio service to “inform, educate and entertain,” and today operates television and radio services across the U.K. along with the World Service and extensive digital output, including the iPlayer streaming service.