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The BBC's Nick Higham
"He's taking an axe to costly bureaucracy"
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BBC Director General Greg Dyke
Greg Dyke sets out his priorities for the BBC
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Monday, 3 April, 2000, 11:48 GMT 12:48 UK
BBC jobs go in shake-up
Greg Dyke
Greg Dyke: Priority is making great programmes
Hundreds of BBC staff will lose their jobs in a drive to slash management costs to free up 100m extra a year for making programmes, director-general Greg Dyke has announced.

Speaking to an audience of BBC employees he revealed his intention to cut the amount of money spent on running the corporation from 24% to 15% of its total income.

The proportion of income spent on programming will rise from 76%-85% over the next five years - resulting in an extra 200m for programming every year.

The big shake-up
More money for programmes and services
More collaboration, less internal competition, less management
Faster decision-making to cope with the speed of change in the market
Broadcasting and programme production work more closely
"Our aim is to create one BBC, where people enjoy their job and are inspired and united behind the common purpose of making great programmes and delivering outstanding services," Mr Dyke said.

"We have taken out a complete level of management."

But Mr Dyke said he would not be able to say for certain how many people would lose their jobs in the reorganisation.

"We will be absolutely fair to those leaving," he said. "The world is changing quickly and we have to change with it if we are to compete."

The reorganisation, the result of a four-month review, will create four new programming divisions: drama, entertainment and children; factual and learning; sport and news.

BBC Broadcast and BBC Production both disappear in the shake-up.

Our aim is to create one BBC, where people enjoy their job and are inspired and united

Greg Dyke
"It's flatter, inclusive, and will result in more collaboration and less internal competition, more leadership and less management," Mr Dyke said.

The number of internally-trading business units will be reduced from 190 to 50, in a bid to improve efficiency and cut duplication.

Mr Dyke will head a new executive committee of 17 directors, nine of whom will be broadcasting and programming heads, compared with four in the existing executive.

Birt and Dyke
John Birt (left) handed over the BBC to Greg Dyke in January
This replaces six chief executives each with their own heads of finance and marketing.

Mr Dyke said that since joining the BBC and talking to people he had heard time and time again of a positive desire for change.

"Most people are rightly proud to work for the BBC but they are concerned about too many layers of management," Mr Dyke said.

He said the BBC had been set a tough savings targets by the government - at least 1 for 1, needing 1bn over seven years.

But he said he thought the government's licence fee settlement was very fair but should not give the BBC room for complacency.

'Continue to change'

"We have got to raise our game and become more cost-effective and more quality conscience," he said.

He said the process of change at the BBC would be ongoing.

"We have to continue to change if we are to be competitive with the best because they are going to change," Mr Dyke said

"We need enough money and the right environment to make great programmes and deliver great services," he said. "That's the only reason we are all here and we shouldn't forget it."

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See also:

30 Jan 00 | UK
Dyke pledges BBC shake-up
25 Jun 99 | BBC after Birt
A new director general
25 Jun 99 | BBC after Birt
Roland Rat: My part in Greg Dyke's triumph
01 Nov 99 | Entertainment
Dyke launches BBC review
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