TRANSPORT For London (TfL) has promised to make £7.6bn of savings between now and 2018 – well above the £5bn target announced in October’s government spending review.
The bus and trains operator said most of the sum will come from outsourcing changes, IT cutbacks and an overhaul of the company structure to be led by Peter Hendy, London’s transport commissioner.
Most station refurbishments have been scaled back to focus on safety improvements, TfL said, and contracts for maintenance, congestion charging and Oyster ticketing will be renegotiated.
Around 800 operational jobs and 800 back office positions are set to be cut.
“We have secured the greatest investment in London’s transport network in 80 years… while protecting front line passenger and customer services,” said Mayor of London, Boris Johnson.
John Dickie, strategy director at London First, said the plans were “on a scale which would challenge any organisation. The degree of savings anticipated and the scale of the management challenge require a culture change within TfL.”