The BBC is to cut a thousand jobs due to a massive budget gap in its licence fee income.

This comes in the same week that the British national broadcaster lost the Olympics and TV channel BBC Three was consigned to the internet.

Professional and support departments such as IT, human resources and engineering will be looked at closely to see where there is duplication, with the possibility of merging divisions across the BBC and its commercial arm, BBC Worldwide.

BBC director general Tony Hall said the BBC was facing "difficult choices" because of the tough financial climate, noting that more than one million fewer people in Britain had a television set than was predicted in 2011.

"Despite the progress already made, and the realities of the licence fee being frozen for seven years, a new financial challenge means additional savings must now be found," he said.

He added that decision-making had become too complicated in recent times, as new services have been introduced, and that he wanted to cut these back to make things simpler, which "inevitably would lead to fewer decision-makers".