The BBC has revealed plans to cut 500 full-time jobs from its workforce over the next two years, as the corporation's annual report showed evidence of financial difficulties.
The BBC said it was “becoming a leaner, more agile organisation” and was “accelerating its digital approach to reach audiences wherever they are”. It also noted that public service jobs had fallen by 10% over the past five years, equivalent to about 2,000 jobs.
The company aims to reallocate resources to “priority areas that deliver real value to the public,” which will include closing and transferring roles in some departments while creating positions in growth sectors.
The changes come at a difficult financial time for the BBC. According to the chief operating officer’s review in the annual report, the public broadcaster reported an operating deficit of £263 million ($339.6 million) for the 2023-24 financial year, up from £193 million ($249.2 million) the previous year.
The BBC is forecasting a deficit of £492m in 2024-25 as it continues to invest in digital transformation and video content while implementing further cost-cutting measures.
The BBC’s total revenue fell to £5.3 billion, down from £5.7 billion in 2022-23. Total licence fee income, which remains the organisation’s main source of funding, was £3.6 billion. However, the broadcaster noted that inflation had significantly eroded the real value of the fee, which now generates 30% less income than it did in 2010-11 when adjusted for inflation.
To address these financial pressures, the BBC is implementing a major savings plan. The corporation has already achieved £323m of its £500m annual target, with plans to cut spending by a further £200m by 2027/28.
“We have made clear that the significant funding pressures we are under mean we need to make further savings, on top of the significant savings and reinvestments we have already made, to deliver the greatest value to the public,” the BBC said.
Despite financial pressures, the BBC has invested £3 billion in public service content in the 2023-24 financial year, making it the largest investor in original British content, the organisation claims.
On the commercial front, the BBC reported sales of £1.9 billion, down from £2.1 billion the previous year.
The BBC has also faced operational challenges, including cybersecurity issues. In May 2024, unauthorised access to the BBC platform led to the leak of files containing personal information of some members of the BBC pension scheme.
