The British Broadcasting Corporation on Tuesday announced 2,900 job cuts – more than one-tenth of its workforce.

BBC director general Mark Thompson said 2,500 jobs will be cut in human resources, finance, marketing, training, legal services and other departments that do not make programs. Another 400 will be cut in factual and educational departments.

The cuts are expected to save the corporation the equivalent of more than $740 million, which amounts to about 10 per cent of its annual expenditure, he said.

About 2,000 workers will be moved from London to a yet-to-be-built media centre in Manchester within five years, including new media, BBC Radio 5 and BBC Sport.

Thompson, who assumed the post in March, has vowed to double the profits at the corporation's television World Service, its commercial arm, and cut costs by 15 per cent in broadcast, new media and news divisions.

In what he promises will be a transformation of the corporation, Thompson says its most-watched television channel, BBC1, will show fewer reruns and fewer "derivative or formulaic programs," including reality TV, and personal, wardrobe and home makeover shows.

He says implementation plans should be in place by March 2005.

Union leaders oppose the job cuts and are threatening strike action.

The BBC, which employs about 27,600 people, is funded by the British government as well as through a licence fee paid by owners of television sets. The licence fee supports domestic operations, while BBC World Service radio is paid for by the government.

The government is currently reviewing the terms of the corporation's charter.