From the Observer:

BBC news is preparing to axe hundreds of jobs as part of the plans by director-general Mark Thompson to cut the corporation's budget.

Flagship shows including The 10 O'Clock News and Newsnight could be affected, according to insiders, and many of the BBC's renowned foreign bureaux are likely to be scaled down or closed.

Senior executives are currently deciding which jobs will go, but one source said: 'Many hundreds of jobs are under threat in news and there are serious questions over whether the quality of programmes like Newsnight and The 10 O'Clock News can be maintained.'

The BBC's news division, which employs around 2,000 journalists, has been asked to find savings of 5 per cent a year for the next five years, according to senior sources.

Thompson is demanding the cuts following the government's decision in January to award the corporation a below-inflation licence fee increase, starting from April this year, instead of the inflation plus 2.3 per cent settlement the BBC asked for.