The BBC says it will cut 2900 jobs – more than 10% of its workforce – over the next three years, as part of a cost saving transformation.

Most of the positions will be shed from administrative departments. Less than half will come from redundancies and savings will be redirected into programming.

With some programs being moved out of London, savings of $805 million a year are expected.

The cutbacks do not affect BBC World Service radio, which is funded by the Foreign Office.

The BBC is preparing for renewal of its royal charter in 2007 by the Blair Government, against a backdrop of growing competition in the media marketplace.

BBBC Director General, Mark Thompson, has described the moves as part of an urgently needed transformation.

“My vision for the future of the BBC has three parts: a bold new program and content strategy based, above all, around the idea of excellence; a transformation of the BBC into a state of the art digital broadcaster; and an irreversible shift in the culture of the BBC towards simplicity, opportunity and creativity.

“We should do what’s right for a strong, independent BBC and its audiences in the long term, not what’s politically convenient now.”

News, radio and music, tv, new media, and national and regional services have been directed to make cost savings of 15% each.