New Delhi, April 17 -- The BBC said Wednesday that it plans to cut up to 2,000 jobs to save 10% of its annual budget - 500 million pounds ($677 million) - over the next two years.

The layoffs announced during a call with staff are the biggest in more than a decade at the U.K. national broadcaster.

"I know this creates real uncertainty, but we wanted to be open about the challenge," interim Director-General Rhodri Talfan Davies said in a staff email.

Davies said that the reductions were driven by inflation, pressures to license fee and commercial income and a turbulent global economy.

The BBC said earlier this year that it faced "substantial financial pressures" and wanted to cut about a tenth of its budget by 2029. The bulk of the cut...