The BBC intends to reduce up to 2,000 positions to save 10% of its annual budget

(SeaPRwire) –   The BBC announced on Wednesday its intention to eliminate up to 2,000 positions as part of a strategy to reduce its annual budget by 10%, amounting to 500 million pounds ($677 million), over the next two years.

These job cuts, revealed during an internal staff briefing, represent the most significant workforce reduction at the U.K. public broadcaster in over a decade.

“I understand this situation creates considerable uncertainty, but we felt it was important to be transparent about the challenges we face,” stated interim Director-General Rhodri Talfan Davies in an email to staff.

Davies attributed the necessary reductions to factors including inflation, pressures on the license fee and commercial revenue, and a volatile global economic climate.

Earlier this year, the BBC had indicated it was experiencing “substantial financial pressures” and aimed to cut approximately 10% of its budget by 2029. The majority of these cuts are slated to occur in the fiscal year commencing April 1, 2027.

These impending cuts coincide with the scheduled arrival of former Google executive Matt Brittin as the new director-general next month.

He will succeed Tim Davie and head of news Deborah Turness, who both resigned following a controversial editing decision in a documentary concerning a speech by U.S. President Donald Trump on January 6, 2021, prior to the Capitol riot.

Donald Trump is currently pursuing a $10 billion defamation lawsuit against the BBC.

The BBC, a cultural institution both highly regarded and frequently criticized, is funded by an annual license fee. This fee recently increased to 180 pounds ($244) and is mandatory for all U.K. households that watch live television or any BBC content.

Opposition to the license fee, including from commercial rivals, has intensified in the era of digital streaming, as many individuals no longer own television sets or adhere to traditional viewing schedules.

The center-left Labour government has committed to ensuring the BBC has “sustainable and fair” funding, though it has not ruled out the possibility of replacing the license fee with an alternative funding model.

Established in 1922 as a radio service with the mission to “inform, educate and entertain,” the BBC now operates 15 U.K. national and regional television channels, several international channels, 10 national radio stations, numerous local radio stations, the global World Service radio, and extensive digital offerings, including the iPlayer streaming service.