In a statement, the BBC boss claimed younger audiences were turning to other streaming sites, including Netflix and Disney+. He went on to reveal as a result, CBBC and BBC Four would be cancelled within the next three years
The move will also see changes to content and services, as the BBC manages the demands of the licence fee settlement and looks to the future.
Speaking to staff, Mr Davie said: “This is our moment to build a digital-first BBC. Something genuinely new, a Reithian organisation for the digital age, a positive force for the UK and the world.
“Independent, impartial, constantly innovating and serving all. A fresh, new, global digital media organisation which has never been seen before.
“Driven by the desire to make life and society better for our licence fee payers and customers in every corner of the UK and beyond. They want us to keep the BBC relevant and fight for something that in 2022 is more important than ever.
READ MORE: The Last Kingdom’s Eliza Butterworth on co-star Alexander Dreymon
“To do that we need to evolve faster and embrace the huge shifts in the market around us.”
Work will start immediately, with further details to be announced in the coming months, including consultations with staff.
Mr Davie added: “I believe in a public service BBC for all, properly funded, relevant for everyone, universally available, and growing in the on-demand age. This plan sets us on that journey.”
This first phase of the plan will see £500m of annual savings and reinvestment to make the BBC digital-led.
The statement also confirmed that the BBC would be losing up to 1,000 employees who work in the public-funded part of the broadcaster.
As well as axing CBBC and BBC Four, Mr Davies explained Radio 4 Extra would also be going in the next few years.
Following the announcement, outraged viewers took to social media to share their disappointment over the axing.
Lauren Brown fumed: “Getting rid of CBBC is so stupid! Not everyone has access to the Internet, not everyone can afford streaming, and the Internet can break down. What about disadvantaged children who cannot get Internet access? Why let them suffer #bbc #cbbc.” (sic)
User @LeithMotive tweeted: “Cutting CBBC is insane. It’s amazing, there is nothing commercial that comes close.”
While Holly Stafford added: “That’s a real shame about CBBC. It offers a lot of educational stuff and really will be missed by families without broadband.”
“#CBBC was invaluable during Lockdown and homeschooling,” Amy penned.
“So many iconic shows that my daughter and other family members have loved watching growing up too. Why can’t it exist as well as online shows? This is very sad news.”