BBC to cut 1000 jobs over license fee shortfall

 JournalismPakistan.com |  Published: 2 July 2015

The BBC is set to eliminate around 1,000 positions due to a significant budget deficit attributed to reduced license fee income. This move aims to address the financial challenges faced by the broadcaster.

Summary

ISLAMABAD: The British Broadcasting Corporation (BBC) is all set to cut around 1,000 jobs because of a £150m budget gap in its license fee income. An unexpected increase in the number of households saying they do not watch live TV so do not pay for a license has been blamed for the shortfall, the BBC reported on its website. “Many cuts are to come from professional and support areas, while management structures will be streamlined,” it said. BBC Director General Tony Hall said the job cuts would help save around £50m a year so more cuts will come. “Despite the progress already made, and the realities of the license fee being frozen for seven years, a new financial challenge means additional savings must now be found,” he said.

KEY POINTS:

• BBC to cut 1,000 jobs due to £150m budget gap.
• Increase in households not paying for TV licenses caused the shortfall.
• Management structures will be streamlined as part of the cuts.
• Estimated annual savings of £50m from the job cuts.
• New financial challenges require further cost-cutting measures.