ITV announces job cuts
- 00:01:31
- ITN
ITV announces job cuts
Broadcaster ITV has announced it is axing 600 jobs and cutting costs in a bid to save £155 million this year. It comes after ITV reported pre-tax losses of £2.73 billion after it wrote down the value of assets on its balance sheet. The company also axed the payment of a final dividend to shareholders. ITV said "significant" savings will be delivered in central services and across ITV studios operations outside London. The firm has already announced it will be scaling back production of Heartbeat and The Royal, which will lead to the closure of one building at the Leeds studios, where there will be 150 of the 600 job losses. Most of the job cuts will be in London, affecting every department and accounting for around 15 per cent of ITV's 4,500-strong workforce. Jobs being axed include production and back office roles. The company also announced it would look to sell its Friends Reunited social networking website and its listings website Scoot. It is also "considering options" for its SDN digital television business. Excluding the write-down in the value of its broadcasting and online assets, Britain's biggest commercial broadcaster reported a profit of £167m, down 41 per cent on 2007. ITV's executive chairman Michael Grade said: "Current conditions in the advertising market are the most challenging I have experienced in over 30 years in UK broadcasting. This is reflected both in our financial results for 2008 and the tough actions we are announcing today. "Our priorities have to be aligned to the changed economic context." The company said it planned efficiency savings of £155 million this year, rising to £175 million in 2010 and £245 million in 2011. Mr Grade added: "The Board therefore recognises that the 2012 revenue targets set in 2007 are no longer appropriate and we are focusing on our core business as a producer-broadcaster, on reducing our costs and on cash generation. Our audience share target remains unchanged." Gerry Morrissey, general secretary of the broadcasting workers union Bectu said he was "outraged" at the scale of the job cuts. "We will do everything we can to protect our members and we will protest to Ofcom about ITV's claim to be investing more in programmes when they are cutting back. "Michael Grade has abrogated his responsibility to ITV's staff. We desperately need a new management model." Mr Grade said: "This is not a decision taken lightly. The board's judgement is that it represents the prudent course in present conditions."
ITN | March 4, 2009
