The BBC is cutting 1,000 jobs

Tony hall bbcBBCBBC director general Tony Hall.

The BBC announced Thursday it is axing 1,000 jobs in a bid to cut costs.

The number of jobs cut represents 6% of its 16,672-strong licence fee-funded workforce.

In a speech to staff, BBC director general Tony Hall said the corporation hopes to save £50 million with this round of job cuts.

The BBC is under growing pressure from the UK Conservative government to become a “leaner and simpler” operation. The corporation forecasts that it could be facing a £150 million ($US234 million) shortfall in income for 2016-17.

The drop in income is largely related to a decrease in people paying the £145.50 ($US227) annual licence fee, which the BBC heavily relies on to keep running. People in the UK are required to pay the fee to watch live TV, whether on their TV sets or via their computers and mobiles. However, as more and more people opt to watching content on-demand and via services such as Netflix, fewer are paying the annual sum.

Separately on Thursday media regulator Ofcom published its public service broadcasting review. The study — which looked into the BBC, ITV, STV, Channel 4, Channel 5, and S4C — found public service broadcasters “continue to make a significant contribution to UK broadcasting” but noted that a growth in watching content online is “creating challenges” for broadcasters.

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