Ofcom prepares for cuts and job losses

The Guardian newspaper reports that Ofcom has begun a review that will result in 'significant' cuts to its £142m annual budget and staff, and that its chief executive, Ed Richards, has agreed to take a 10% pay cut.

Richards said today that the review would lead to a "significant reduction" in expenditure, with "job losses likely".

The media and telecoms regulator, which employs 873 staff and has a budget of £142m for the year to the end of March 2011, intends to complete the first phase of its review in late summer.

Speaking to staff today, Richards said that the organisation would have to make "some very tough decisions".
This would ultimately see Ofcom "do more for less", he added. "We will redefine how we do things to deliver the same capability but spend less money doing so."

Ofcom, and Richards, attracted criticism from the Conservatives when they were in opposition last year.
David Cameron singled out Richards's pay as an example of inflated public-sector salaries.

Richards had a total remuneration package of £392,056 in 2008/9. In the 12 months to the end of March this year that dropped to £381,713.

He revealed today that he would take a 10% cut, more than £38,000, to £343,541 in the coming year to the end of March 2011.

The Ofcom chair, Colette Bowe, who was paid £200,000 in the year to the end of March, will also take a 10% pay cut.

However, while Ofcom's top management has not taken bonuses in the past two years no decision has been made about bonuses for the current financial year.

It is not known how deep the cuts to Ofcom's budget will be, or the number of jobs that will go. However, in the emergency budget on 22 June the government indicated that it was looking for cuts of around 25% from all departments.

Read the full Guardian article at:
http://www.guardian.co.uk/media/2010/jul/01/
ofcom-cuts-job-losses

Our thanks to Mike Terry for spotting this article