The BBC, the U.K. public service broadcaster, will cut around 550 jobs, slash content spending by £80 million ($107 million) over two years and “review” broadcast TV channels as part of a big cost savings push.
The moves are part of the effort by the team of new BBC director general Matt Brittin, a former Google top executive, to slash costs across operations and functions.
The staff reductions will hit the BBC’s Content, Nations and News teams, with the BBC also eyeing further job reductions in corporate and other areas to the tune of around 700, Brittin said in a staff memo on Wednesday, in which he highlighted that “we live in very uncertain times.”
Content commissioning spending across the BBC’s TV, radio, and news divisions will amount to £80 million over the coming two years, the leader shared on Wednesday. Brittin also said that the broadcaster would “review” the viability of linear channels, meaning some could disappear, as well as content, meaning that “some programs” will be axed.
Broad cost savings have been in the works for a while. In an internal email in April, which was leaked, the BBC’s deputy director general, Rhodri Talfan Davies, said the broadcaster would have to save £500 million ($670 million) from its annual operating costs budget worth around £5.0 billion ($6.7 billion) over the next two years. He signaled that the total job number at the BBC could drop by up to 2,000.
British media have in recent days positioned them as the biggest cuts at the public broadcaster in 15 years. The reductions come as the BBC’s executive leadership is in the final stages of negotiations with the U.K. government, led by Labour Party boss Keir Starmer, over its future funding.
Brittin started his BBC role on May 18, taking over from Tim Davie, who resigned after editorial blunders, including a particularly explosive Trump row, that caused headlines and discussions. Brittin, a graduate of Cambridge, joined McKinsey as a consultant out of university before he became a commercial director at Trinity Mirror, owner of The Daily Mirror. In January 2007, Brittin joined the Google executive ranks.
In December, the U.K. government had launched the once-in-a-decade review of the BBC’s royal charter, which governs its operations and priorities, with the aim of “bolstering trust in the broadcaster and putting it on a sustainable financial footing.”
Read Brittin’s full staff memo below.
Hello everyone,
It’s almost a month since I started here, and I’ve been getting to know more of you and of the BBC. I’ve heard your belief in the mission, and your ambition to reinvent the BBC for the future – both of which I’m working on and will come back with more in September. Of course, you also want to know what the announced savings mean for you. It is important to me that you have clarity on this as soon as possible.
The scale of savings requires tough choices, careful work and won’t all be ready at once. We are committed to letting you know as soon as we have plans in your area. All divisions will be making significant savings. Today some divisions are ready to set out the first phase of these plans, with more to follow.
We have first updates from News, Nations and Content. Together, by the end of this financial year, they deliver £160 million of cost savings, including staff and non-staff costs, and a net reduction of around 550 roles. This is part of the 1,800-2,000 roles announced to go over the next three years.
More savings will be set out in the months ahead, across all divisions. This includes corporate divisions where work is underway – we expect around 700 roles to close in these areas.
Reductions of this scale inevitably mean some compulsory redundancies, though we will work hard to avoid this wherever we can. Many divisions have already opened voluntary redundancy windows; more will be opening today.
We will also have to close some programmes. These are difficult choices and we will apply three guiding principles:
• Sustain output with the highest audience value and impact
• Meet audiences where they are, reducing spend elsewhere. For example, we will reduce commissioning spend across Content, News and Nations by around £80 million in 27-28 and review our broadcast TV channels and radio network portfolio as audiences move online.
• Make the BBC simpler and faster – we must reduce duplication, clarify accountability, and increase the speed of decision making. This includes reducing senior leaders by at least 10%.
The News, Nations and Content divisions will set out more details in calls and updates over the coming days. For other divisions, leaders will update you with the latest progress on the size of the savings needed, the opening of voluntary redundancy windows and when you will hear more.
Aside from calls with your own teams, I will host an all-staff session on Tuesday, 23 June at 2pm BST, taking your questions, alongside Kate Phillips, Rhuanedd Richards and Jonathan Munro. Please do join if you can.
We live in very uncertain times. Our audiences rely on us every day to keep them informed, entertained and equipped to make sense of the world. Making savings while fulfilling our mission means a doubly difficult time for everyone. Do speak to your leaders and use the support that’s available. In the meantime, thank you for all you are doing.
Matt
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