BBC 'could shed 25% of its workforce'

The BBC could cut a quarter of its workforce by 2016 in order to meet director general Mark Thompson's target of a 20% cut to the corporation's costs.

More than 1,000 job losses have already been announced, including 650 at the BBC World Service and 360 at the BBC Online division.

However, that is understood to be just the start of the cuts, with some sources indicating that the headcount reduction could reach as high as 25% of the existing BBC workforce of around 21,000, reports The Guardian.

BBC sources have said that no total jobs cuts figure can yet be given as there are a number of factors still being worked out by the corporation. Jobs cuts could be reduced, for example, if more efficiency savings are secured across the BBC's operation.

Last night, a BBC insider claimed that the real level of job losses is more likely to be about 3,000, including the 1,000 that have already been announced.

Reacting to the report, BBC chief operating officer Caroline Thomson said: "It is simply not true to say that the BBC is planning a 25% cut in its workforce. As we have said repeatedly, just because we are making 20% savings does not mean we need to cut 20% of jobs."

A BBC spokesman said that the savings being made will "transform the BBC", but stressed that it is "too early" to speculate on further job losses.

"Whilst we cannot speculate about job losses because it is far too early to say, there are many other ways of make savings and it will depend on what we can achieve in areas such as technology and finding better ways of working," she added.

"That is why we are asking staff for their ideas and input now including how we become a simpler organisation and how we can attract, retain and inspire the best people. We recognise that this is difficult for staff and will be providing as much support as is possible to those areas affected."

Today, it emerged that the BBC is wasting almost £80 million a year through ineffective management of under-performing employees.

An internal BBC People study, leaked to The Guardian, criticised the corporation for paying a salary top-up to thousands of employees who should not receive it.

Poorly performing staff are costing the corporation more than £50m a year, said the report, while a further £28m is being lost in "unpredictability allowances" paid annually to BBC staff who did not actually work unpredictable hours.

The study is understood to have recommended that the BBC should foster a more flexible workforce with more people on short-term contracts and fewer long-term "lifers".

It added: "People don't leave the BBC, they leave line managers. 50% of the organisation has a turnover of just 3%. Some areas have even less.

"When considering the employee deal, it's more productive to start from identifying what it's not. It's not a job for life, a gold-plated pension [or] a paternalistic institution."