TfL Commissioner Peter Hendy's circular to all TfL staff on 2 December 2008 spelt out the company's cost-cutting agenda and plans to slash jobs ...

"Our 10-year Business Plan sets out our plans for multi-billion pound transport investment. This year, the Operating Cost Review team has been working with the business to identify opportunities to make the £2.4 billion savings we need to deliver our commitments within the available funding levels.

"As a result of this work I will, with the Chief Officers, be making a number of changes to TfL’s structure. The new structure will provide a platform for delivering the necessary cost savings. The result of the process will be a leaner, fitter and more focused organisation which is geared towards delivering the new Mayor’s transport priorities, while providing value for taxpayer money.

"The first stage of the change process will begin in January 2009, and be complete by April 2009. It will be followed by a series of wider changes, the majority of which will take place over the next 12-18 months."

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"While the proposed changes will result in a significant reduction in jobs within TfL, these will be managed as much as possible through removal of vacant roles and transfer of existing employees into roles currently filled by non-permanent labour."

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"An Operating Cost Reduction Programme team, overseen by the MD Finance, will be established to co-ordinate implementation of the proposed changes and ensure that we make the savings we need."