# BBC cuts 2,000 jobs and shuts channels as funding crisis deepens

> The British broadcaster announces major layoffs and channel closures to save £500 million over two years as TV license revenue declines.
- Title: BBC cuts 2,000 jobs and shuts channels as funding crisis…
- Summary: The British broadcaster announces major layoffs and channel closures to save £500 million over two years as TV license revenue declines. The BBC is cutting…
- Keywords: bbc, layoffs, media, television, uk broadcasting, cost cutting, tv licenses, cuts, 000, jobs, shuts, channels
- Source: Fastcompany — https://fastcompany.com/91627387/bbc-layoffs-today-jobs-slashed-channels-cut-immediate-cost-pressures
- Read time: 2 min
- Topics: bbc, layoffs, media, television, uk broadcasting, cost cutting, tv licenses
## BBC announces major job cuts
The BBC will cut over one hundred jobs as it attempts to save five hundred million pounds over the next two years amid immediate cost pressures.
## Funding model under strain
The BBC is primarily funded by a licensing fee, a one hundred eighty pound annual payment that provides viewers with all TV channels, streaming services, and more.
## License sales are falling
The number of TV licenses sold has shrunk in recent years, putting pressure on the broadcaster's revenue and forcing difficult decisions about its future.
## Director-general on tough choices
BBC director-general Matt Brittin said the broadcaster must make every pound work harder and reinvent itself for a changing world, acknowledging that means tough choices.

> We need to make every pound work harder for audiences as we respond to the immediate cost pressures and reinvent the BBC for a changing world.
## BBC Scotland to close
The BBC will stop broadcasting BBC Scotland come spring as part of its cost-cutting measures to address the funding crisis.
## BBC Three shuttered
BBC Three, a channel geared toward younger audiences, will cease broadcasting in spring as the broadcaster pursues savings across its portfolio.
## Radio 4 Extra cut
The BBC is cutting archive radio network Radio 4 Extra, with its content becoming available on the BBC Sounds app instead.
## Savings fall short of target
BBC News culture and media editor Katie Razzall said the channel closures save less than ten million pounds a year, a tiny fraction of what is needed.

> Axing these TV channels and Radio 4 Extra may make business sense in a world where audiences are increasingly finding their BBC content on-demand, but I understand it saves less than 10 million pounds a year, a tiny fraction of what's needed.
## Larger gap remains
The BBC has announced two hundred million pounds in savings but still needs to find another three hundred million pounds to meet its cost-reduction target.
## Broader industry struggle
Media companies continue to struggle as consumers pivot away from traditional forms of content, with the BBC facing similar pressures to other broadcasters.
## Negotiations with government
The BBC plans to cut up to two thousand jobs over the next few years as it negotiates with the UK government over its future funding and role.
## Key takeaway

The BBC is cutting over one hundred jobs and closing BBC Scotland, BBC Three, and Radio 4 Extra to save £500 million as TV license sales fall.