London mayor Sadiq Khan will cut a number of jobs across Transport for London in order to save £800m a year.
This will be the biggest reorganisation in TfL’s history and is part of a five-year business plan to cut waste in the organisation.
The plan aims to deliver modern and affordable transport and includes freezing passenger fares until 2021.
It also includes a number of investments such as new signalling systems installed on the Metropolitan, Hammersmith, DLR and District and Circle lines and station upgrades at Victoria, Bond Street, Finsbury Park, Camden and Holborn.
The completion date of the Bakerloo line extension through south-east London will also be brought forward by two years, from 2031 to 2028/29, as part of the plan.
The mayor expects to save £2bn by establishing a new operating model that reduces management layers and merges the organisation’s engineering arms.
This has already begun with TfL saving £70m by reducing spend on IT projects and £40m over the next five years through the cutting 49 senior managers from the organisation.
Mr Khan is hoping to save a further £2bn from renegotiating and bringing together the management of contracts, and getting more affordable deals from suppliers.
TfL plans to raise £3.4bn by 2023 from its land and retail assets to reinvest directly into the network.
Mr Khan said: “The new TfL business plan being presented today sets out an ambitious and wide-reaching programme that allows us to both freeze TfL fares, and invest record amounts modernising London’s transport’s infrastructure.
“The previous mayor refused to do it, but in reorganising a flabby TfL and finding major efficiency savings within the organisation, we’re securing this record investment without burdening Londoners with further hikes in TfL fares.
“Our plans over the next five years include modernising major underground stations, bringing forward plans to extend the Bakerloo line, and investing record amounts in cycling and cleaning up London’s air.”