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BBC to cut 1,000 jobs in face of £150m TV licence shortfall

The BBC is set to cut 1,000 jobs and merge its technology, engineering and digital teams in order to reduce costs at the organisation.

BBC director-general Tony Hall revealed that the stringent measures were necessary to compensate for a projected £150 million shortfall in licence fee revenue.

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In a letter addressed to BBC employees, Mr Hall claimed that the changes will save the corporation £50 million a year, but added that further “hard choices” should be expected.

“I've asked Ralph Rivera, Matthew Postgate and David Gibbons to bring together our teams in Technology, Engineering and Digital,” he explained. “And, that's not just in the public service, but across Worldwide too. It's just a start - and, over the next few months, I'll be working with our Directors to see what more we can do."

The BBC has been hit hard by the rise of online streaming and Internet television, which has reduced the number of households with actual TV sets. By 2016 it is estimated that the BBC will receive £150 million less from the TV licence than it does currently. Mr Hall also said that the redundancies would lead to a “simpler, more effective, more efficient BBC.”

The BBC has also had to face the prospect of a new Conservative government, which it has been claimed wants to ruin the broadcaster. There have been reports that MPs want to decriminalise licence fee non-payment, which would further damage revenue streams.

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It has also been claimed that the Treasury is contemplating making the BBC pay to provide free television for the over-75. A scheme that is set to cost an estimated £700 million a year.

Barclay has been writing about technology for a decade, starting out as a freelancer with IT Pro Portal covering everything from London’s start-up scene to comparisons of the best cloud storage services.  After that, he spent some time as the managing editor of an online outlet focusing on cloud computing, furthering his interest in virtualization, Big Data, and the Internet of Things.