Category: Â鶹Éç
Date: 21.03.2005
Printable version
£221m a year savings in content and output areas by March 2008
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2,050 posts to close - 13% reduction in headcount in content and output
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total cost savings of £355m a year released to reinvest in programmes
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reinvestment includes £45m for News, £14m in CÂ鶹Éç, £47m for TV Drama, £23m for TV factual programmes, £52m in the UK's nations and regions, £27m in Radio & Music and £32m in New Media.
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Â鶹Éç Director-General Mark Thompson today announced savings of £221m a year in the organisation's content and output areas by 2008, which will be reinvested back in to programmes.
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Today's figures include the closure of 2,050 posts and represent a 13% reduction in headcount in content and output areas.
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They follow the first round of 46% headcount savings announced two weeks ago in the Â鶹Éç's Professional Service divisions amounting to £139m.
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Annual costs savings by 2008 now total £355m - after a small contingency - which is ahead of the £320m target set last December.
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This represents an overall 19% reduction in the Â鶹Éç's UK public service workforce by 3,780 through redundancy, natural staff turnover and outsourcing.
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Mr Thompson told all Â鶹Éç staff: "This is all money we plan to spend on programmes and content, both to improve the services we deliver to audiences right now and to build strong Â鶹Éç services in the future.
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"All divisions are now finding ways of achieving these savings through genuine improvements rather than crude cuts."
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He said that, over the coming months, there would be a lot of hard-edged activity across the Â鶹Éç to make the changes real.
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This would include revisiting the Â鶹Éç's technology strategy, simpler processes, more prioritisation and rewarding people for excellent leadership.
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Acknowledging that there were risks in undertaking change on such a large scale, Mr Thompson said: "We are going through the toughest period any of us can remember. It's a difficult and painful process but necessary.
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"We need to free up money to start investing in our digital future, to end our current Charter in December 2006 on budget and to show we are serious about providing value for money."
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The savings, by March 2008, break down as follows:
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TV - 47 posts (18%). Savings £37m
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Radio & Music - 150 posts (15%). Savings £9.4m
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New Media Central - 58 posts (18%). Savings £7.7m
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Nations and Regions - 735 posts (13%). Savings £54.4m
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Drama, Entertainment and CÂ鶹Éç - 150 posts (10%). Savings £45.2m
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Factual & Learning - 424 posts close (21%). Savings £22.9m
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Â鶹Éç News - 420 posts (12%). Savings £34.4m
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Â鶹Éç Sport - 66 posts (13%) Savings £9.9m
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And
Professional Services - 1,730 posts (46%), Savings £139m.
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All savings will be phased over the next three years through a combination of modernising production, eradicating duplication and reducing administrative support staff.
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In terms of reinvestment, Mr Thompson said a balance had to be struck between investment to boost the quality of today's services and investment in services of the future.
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But the savings meant that by 2008/09 there would be £355m of fresh investment each year.
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Investment priorities include:
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£47m a year by 2008 in TV drama on Â鶹Éç ONE and Â鶹Éç TWO
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£6m for the Alternative Proms and Music for All
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£23m for TV factual overall including £9m for Specialist Factual on Â鶹Éç ONE
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£45m for News, boosting original journalism, current affairs, Middle East news coverage and news on-demand
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£52m for Nations & Regions' local output, plus an increased share of network TV spend
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Investing in Building Public Value ideas, including £32m to help New Media develop platforms and navigation, on demand and two-way applications.
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Mr Thompson said that investment in existing services could proceed, but new services needed to be piloted and tested.
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He said the Â鶹Éç Governors also needed to apply their own public value test and plans would be dependent on the licence fee settlement and Governors' approval.
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Notes to Editors
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'Content and Output' areas include: Television; Radio & Music; New Media central; Sport; Nations & Regions; News & Current Affairs; Factual and Learning; Drama, Entertainment & CÂ鶹Éç divisions.
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They do not cover Â鶹Éç Broadcast, Â鶹Éç Resources, the Â鶹Éç's Technology Group including R&D, Â鶹Éç Worldwide or the Â鶹Éç's global news division including Â鶹Éç World Service, Â鶹Éç World and the international online sites.
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'Professional Services' includes: Policy & Legal; Strategy & Distribution; Marketing, Communications and Audiences; Finance, Property & Business Affairs; and Â鶹Éç People.
