Value for money review: the £320m cost savings

LONDON - The BBC said that the budget cuts made to achieve the three-year savings target of £320m will vary from division to division.

In professional services, which includes finance, property and business affairs as well as marketing, communications and audiences, costs will be reduced by 25% (£57m). Divisional support will also be reduced.

Total number of posts affected will be 2,500, with half the cuts coming as redundancies and half outsourced, leading to savings of £68m.

Better procurement and non-headcount savings will total £93m, and there will be 15% efficiency savings in output areas such as radio and music, TV, new media, BBC news nations and regions, generating £79m in savings.

There will be another 15% savings in cost-per-hour prices for commissions from all supply sources, totalling £80m. This excludes sports rights.

Thompson said: "Plans will combine programme strategy aspirations, value-for-money savings and the impact of other reviews. This means net redundancies may be less than a 15% savings target suggests.

"We want to invest in new content while also making productivity gains in existing output. It may mean fewer posts on existing tasks, but new posts for new tasks. But we need to save before we can spend."

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .

Topics

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content