07/03/2017 12:16 PM AEDT | Updated 07/03/2017 12:36 PM AEDT

The ABC To Cut Up To 200 Staff By July In Massive Restructure

And $50 million from staff savings will be invested in a new 'Content Fund'.

Michelle Guthrie has announced big changes at the ABC.
Fairfax Media
Michelle Guthrie has announced big changes at the ABC.

The Australian Broadcasting Corporation is set to shed up to 200 jobs in coming months, funnelling savings into a new $50 million content fund.

ABC managing director Michelle Guthrie announced the long-awaited decision on Tuesday afternoon, confirming months of speculation that middle management jobs were in the firing line as the government broadcaster looks to modernise and cut costs.

Management positions will be cut by around 20 percent across the organisation, coming out to 150-200 jobs.

On the upside, there will be 80 new jobs created -- mostly in regional and rural areas -- to boost the ABC's digital and video coverage.

The money saved from cutting jobs will be pushed into a new content fund, in an attempt to reach new and infrequent audiences. Guthrie said she wanted a "leaner, less cumbersome management structure" to provide "more effective, streamlined service" and "quicker decision-making".

"We lack the flexibility to quickly adjust to the fast-changing audience trends," Guthrie told staff around the country in a broadcast address on Tuesday.

"Our reach on television and radio is declining and digital is struggling to bridge the divide."

"We have significant audience gaps, socially, culturally and geographically. This means we're falling short of properly and effectively representing, in our employees, content and audience impact, the modern Australia in which we live."

More to come.