UK public broadcaster the BBC is slashing more than 200 jobs as it launches BBC Technology, a commercially-driven operation providing IT services to the BBC and external companies.
The job losses will come from existing technology and operations subsidiary BBC Resources, part of which will be brought into the main organisation. The move comes as a far-reaching restructuring at the corporation is expected to lead to the loss of up to 1,000 jobs over three years.
BBC director general Greg Dyke aims for BBC Technology to raise up to $320m in extra revenue over the next six years for the corporation. The wholly-owned subsidiary is to be launched in October with a staff of about 1,300 and is expected to be profitable within three years.
The BBC had faced calls to privatise Resources but said it wants to take full advantage of new media developments. The BBC will initially be BBC Technology's main customer but the company intends to develop a portfolio of external customers who will buy communications and media distribution services.