600 jobs to go at ITV
STAFF at Granada were bracing themselves for job cuts after its parent, ITV, announced 600 posts would go across the group.
The news came as the broadcaster posted losses of £2.7bn associated with a write-down in the value of its assets.
The company, which has been hit by a fall in advertising, said it would make other “significant” savings, including efficiencies in regional news and network programmes.
Savings of £155m are to be made this year, rising to £175m in 2010 and £245m in 2011.
It’s understood staff at Granada’s headquarters in Manchester will be briefed later today, while their colleagues at Yorkshire TV in Leeds will learn of redundancies this morning.
It had been feared that a large number of jobs would go in Yorkshire with production of popular dramas and game shows either being moved to other bases or shelved. Production of Heartbeat and The Royal were suspended last month.
Michael Grade, executive chairman of ITV, 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 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.
“We are now implementing the plan needed to enable ITV to get through this difficult period and emerge as a leaner and fitter business.”
Anoouncing its results for the year ended December 31 ITV, which saw adjusted adjusted pre-tax profits slump from £311m to £211m, said it was to suspend its final dividend.
It is also looking to sell the Friends Reunited website.
Mr Grade added: “Visibility on future revenues is limited and trading in 2009 remains uncertain. However we expect to continue to outperform the market, increasing our share of television advertising revenues for the full year once again.”
