Volkswacht Bodensee - BBC to axe 500 more jobs in bid to be 'more agile'

The redundancies, to be achieved by closing and transferring some roles and creating others in "growth areas", are the latest layoffs as the BBC copes with squeezed funding and inflationary pressures.

The broadcaster, which relies heavily on an annual £169.50 licence fee paid by every UK household watching live channels on a television, is also grappling with wider changes in media consumption such as streaming and on-demand services.

It will shed the 500 jobs by March 2026, after already reducing its headcount by 10 percent in the last five years -- a reduction of almost 2,000 roles.

Detailing the changes in its annual report published Tuesday, the BBC said the move was 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 said.

In his review of the past year, director-general Tim Davie said years of below-inflation licence fee settlements had "chipped away" at its income and put "serious pressure on our finances".

Although inflation-linked rises have been reinstated, he noted the broadcaster had experienced a 30-percent real terms cut from 2010 to 2020 and "a tough couple of years of flat funding".

The BBC collected £80 million less in licence fee income in the last year, driven by a two percent decline in sales volumes and flat licence fee pricing.

The number of active licences dropped from 24.4 million in 2022-23 to 23.9 million by the end of last year, according to the annual report.

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

"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 said that would also require discussions with the government about the "right way" to fund the BBC World Service at "a critical moment for democracy worldwide".

K.Hofmann--VB