News cuts at the BBC

The Observer is this morning claiming that BBC cuts threaten news meltdown

The report claims that


"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,says the paper spent around £90m on news gatering last year and needs to find savings of around £4.5m

But

The savings will be contained in a five-year business plan, which is due to be presented to the BBC Trust later this month but has not yet been finalised. The trust, headed by BBC chairman Sir Michael Lyons, may decide to veto moves to cut the BBC's news coverage, regarded as among the best in the world, and demand that cuts are made elsewhere instead. The plans will be discussed over the summer and are expected to be implemented in the autumn.