Sport, news to be hit as BBC to make 500 million annual savings

| 06-12-2010

In a stark disclosure, BBC director General Mark Thompson has highlighted the huge challenges that the BBC faces over the coming years revealing that in order to function the cash-strapped corporation needs to make annual savings in the region of half a billion pounds.

Speaking to The Guardian newspaper, Thompson said that such cost-cutting was necessary so that the BBC complied with the recent settlement in its licence fee. He admitted that the BBC would face a tough few years ahead and that the key going forward would be to do fewer things better.

Even though he calculated that nearly two thirds of the necessary annual savings could be made from slashing overheads, Thompson conceded that programming would not escape the axe. "However well-resourced the BBC is, we cannot afford to run two global news operations, " he told the newspaper. In addition to news, sports and online services will be targeted.

Thompson did not reveal just how many jobs would be lost in the major rationalisation project.