BBC employees reacted angrily as the public broadcaster unveiled a package of cuts Tuesday that includes closing two digital radio stations and reducing its online presence.

Up to 600 BBC staff and freelancers could lose their jobs in the cuts, which would reduce operating costs by 25 per cent annually.

The BBC gets about £3.4 billion ($5.3 billion) from TV licence fees and additional revenue from sales of its programs. It aims to cut overhead costs by about £100 million ($156 million).

Among the cuts:

• Closing down new music station BBC 6 and the Asian Network.
• Reducing spending on imported TV programs by 20 per cent.
• Cutting the number of web pages it produces by half and its web budget by 25 per cent.
• Capping investment on sports rights at £300 million annually.
• Selling off BBC magazines such as Top Gear.
• A 25 per cent cut in senior management pay by 2013.

Gerry Morrissey, general secretary of the broadcasting workers union Bectu, called the cuts "totally unnecessary and … purely politically motivated.

"It is obvious that the BBC is being bounced by its competitors and by the political climate ahead of the forthcoming general election," he said.

"Where is the licence fee payer in these discussions? What consideration is being shown to people who enjoy the services now put at risk? Where is the BBC's commitment to delivering for the U.K.'s diverse audience and to reflecting in the makeup of its staff the multicultural U.K.?"

Michael Lyons, chairman of the BBC Trust, says the BBC has to become more 'sharply focused.' (Reuters)

The strategic review estimates the changes could free up $940 million for the BBC to reinvest on content. The thrust of the changes is that BBC would do fewer things, but create higher-quality content, said Michael Lyons, chairman of the BBC Trust, the body that supervises the public broadcaster.

"The public pick up the bill for the BBC and it is right that it constantly evolves to meet their expectations," Lyons said.

"We welcome the general direction of this report, although we will want to test and consider how it is delivered. We are clear it heads towards a more disciplined and sharply focused BBC. That will mean some difficult choices. But we will not shrink from those choices where they are in the interests of licence fee payers."

Mark Thompson, director general of the corporation, said the two radio stations would be closed by the end of 2011 at the earliest.

The proposed changes were leaked to the Times last week ahead of Tuesday's official announcement.

There was strong reaction to last Friday's leak, with music industry figures lamenting the loss of BBC 6, which has presenters such as Jarvis Cocker, Lauren Laverne, Steve Lamacq, Liz Kershaw, George Lamb and Dave Pearce and concentrates on British music.

"It would be a bad thing if it closed down. It's great old music, it's great new bands. People on that station love music," said producer and musician Mark Ronson, speaking on BBC 5.

About 90,000 people have so far joined an online campaign to save the station.

BBC Worldwide, which markets BBC programming around the world and operates as a commercial broadcaster, has been told to move away from physical media, including its BBC magazines.

A target of two-thirds of its revenue should be coming from international markets by 2015, the review said..

At least $78 million a year more should be going to children's programming, the review said, but it urged the public broadcaster to abandon youth and teen programming to the commercial networks. It also urged a revamp of radio, with more talk on Radio 2 and more repeat of programming across the BBC's five stations.

The proposed changes will undergo a review by the BBC Trust before final action is taken. Lyons promised to give the public the chance to comment on the cuts.