Variety: BBC to Cut 500 Jobs as Financial Deficit Grows

Story from Variety:

The BBC has revealed plans to reduce its workforce by 500 full-time positions over the coming two years as the broadcaster’s annual report displays evidence of financial difficulties.

The BBC said that it was “becoming a leaner, more agile organization,” and was “accelerating our digital-first approach to reach audiences where they are.” It also noted that public service roles have decreased by 10% over the past five years, equating to nearly 2,000 positions.

The corporation aims to reallocate resources to “priority areas that provide real value for audiences,” which will involve closing and transferring roles in some departments while creating positions in growth sectors.

These changes come at a challenging financial time for the BBC. According to the chief operating officer’s review in the annual report, the public broadcaster reported a £263 million ($339.6 million) operating deficit for the 2023-24 fiscal year, up from £193 million ($249.2 million) the previous year.

Looking ahead, the BBC forecasts a £492 million deficit for 2024-25 as it continues to invest in its digital transition and video content while implementing further cost-saving measures.

The BBC’s total revenue dipped to £5.3 billion, down from £5.7 billion in 2022-23. Licence fee income, which remains the organization’s primary funding source, totaled £3.6 billion. However, the broadcaster noted that inflation has significantly eroded the real-term value of the fee, which now generates 30% less income than it did in 2010-11 when adjusted for inflation.

To counter these financial pressures, the BBC is implementing a substantial savings plan. The broadcaster has already achieved £323 million of its targeted £500 million annual savings, with an additional £200 million in cuts planned by 2027/28.

“We have been clear that the significant funding pressure we are under means we need to make further savings, on top of the major savings and reinvestment we have already made, to deliver the most value for audiences,” the BBC said.

Despite the financial squeeze, the BBC invested £3 billion in public service content during the 2023-24 fiscal year. The organization claims this makes it the largest investor in original British content.

On the commercial front, BBC Commercial reported sales of £1.9 billion, down from £2.1 billion the previous year.

The broadcaster also faced operational challenges, including cybersecurity issues. In May 2024, unauthorized access to a BBC platform resulted in the exfiltration of files containing personal information of some BBC Pension Scheme members.