The BBC has unveiled their restructuring plans to save costs. Therefore, they are shutting two of their television channels. Moreover, the move will lead to axing of 1,000 jobs.
United Kingdom is experience historical inflation. Therefore, along with common man the economic crunch is making it challenging for businesses to cope up. Amid these economic challenges, BBC has decided to close BBC Four and CBBC over the next few years. In addition, BBC News Channel and BBC World News will merge as a single channel for UK and international audience. The public funded broadcaster is aiming to save £200 million annually. BBC has termed the move as an era of austerity and digital transformation.
Challenges for BBC
BBC is facing several challenges on various fronts. Culture secretary has imposed a two years freeze on license fee. Similarly, their production costs are rising and sources of funding are squeezing. Moreover, BBC’s long- term financing is under review as well.
Restructuring will affect 6% of total headcount
This restructuring project will also affect multiple jobs across the broadcasting institution. Director General Tim Davie announced to staff that the restructuring will lead to a loss of 1,000 jobs across the United Kingdom. Moreover, Davie told staff he plans to cut or reallocate about £500mn of annual spending. This amount is approximately one tenth of BBC’s annual revenue. In addition, BBC will shred 6% of their total headcount. Approximately, £300mn of this investment will become part of online content instead of traditional broadcasting.
Mr. Davie, who took over from Tony Hall as BBC director-general in September 2020. Trimming to headcount is part of his strategy. Therefore, his policies have affected some 1,200 jobs since he assumed the role. “When I took this job I said we need to fight for something important: public service content and services, freely available universally, for the good of all. The fight is intensifying; the stakes are high”. Davie said in his statement.
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