The BBC will shed 2,000 employees as part of a five year restructuring process (Image: Toby Melville, Reuters)

The BBC is set to shed almost 2,000 employees over the next five years in an attempt to save £670 million after increases to the television licence fee were frozen until 2017.

800 of the lost positions will fall in the news division, cutting almost one fifth of the 5000-strong workforce by merging the World Service and general news division to save £69m.

Radio and television are also facing cuts, with reductions in spending across all radio networks excluding Radio 4, and the axing of BBC HD and BBC1’s Politics Show.

BBC Birmingham has been stripped of all factual radio and television productions, including the loss of the Chelsea Flower Show – however other production, including Doctors and The Archers, will remain.

BBC2 will lose original afternoon programming, being replaced with repeats, and BBC3 and BBC4 will face a structural shift to align them as supporting channels for BBC1 and BBC2.

Entertainment and sports spending is set to decrease, with fewer original programmes and overseas purchases, and sharing of sport rights with rival networks.

Children's programming will be removed from BBC1, moving to dedicated children's channels CBBC and CBeebies following the nationwide transition to digital television in 2012.

Radio 5 Live will lose its focus on entertainment, instead opting for news and sport, with Radio 3 and local radio facing cuts to spending and programming, opting instead for shared content across the network.

The BBC Asian Network is also set for a 34.0 per cent reduction in content spend, while the corporation is set to vacate its iconic West London premises (also known as Television Centre) and relocate staff, either to Broadcasting House in Central London or a new facility in Salford.

The cuts are required as a result of the networks annual £145.50m licence fee being frozen for six years.

The BBC's director general, Mark Thompson, warned the BBC is now "stretching efficiencies", adding: "It's my judgment that this is the last time the BBC will be able to make this level of savings without a substantial loss of services or quality or both."

Speaking to The Guardian, Thompson said: "This is a plan which puts quality and creativity first. It's a plan for a smaller BBC, but a BBC which uses its resources more effectively and collaboratively to deliver a full range of services to the public."

Not all are satisfied with Thompson's claims, with the National Union of Journalists claiming quality journalism has taken a disproportionate hit that will damage the quality and reputation of the BBC.

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