Yahoo Finance ITV to cut 200 jobs as ad revenue tumbles
ITV is to cut 200 jobs as the Love Island broadcaster seeks to shore up its finances amid a deep slump in advertising revenues.
Dame Carolyn McCall, chief executive, told staff in an email this morning that redundancy consultations will begin as part of a wider restructuring programme aimed at saving £50m a year.
ITV will offer workers a chance to take voluntary redundancy, though some of the cuts will be compulsory.
Around 200 roles are expected to go, though sources said this could change depending on how many people accept voluntary redundancy.
It comes as the I’m A Celebrity broadcaster grapples with a huge slump in advertising spend with brands slashing budgets amid rising inflation and interest rates.
Dame Carolyn has previously described the downturn as the worst since the financial crisis.
In a further blow, ITV’s thriving studios business is now feeling the impact of last year’s Hollywood strikes, which brought production to a standstill for months.
ITV has also suffered a slowdown in sales of its shows to other broadcasters, which have cut their content spend due to the ad slump.
The job cuts, first reported by industry magazine Broadcast, will be focused on ITV’s media and entertainment division, which includes its streaming and broadcasting operations.
Back-office functions such as commercial and technology will also be culled, with bosses considering the use of automation to replace some roles.
ITV Studios, news teams, daytime TV and soap operas are not expected to be included in the cuts as the broadcaster attempts to protect its content output.
Bosses are holding meetings with affected staff members today and will launch a 45-day consultation process. An existing hiring freeze, which was due to be lifted over the summer, will also be extended until the end of the year.
The cuts highlight the extent of the challenge facing traditional broadcasters as they navigate the transition to the streaming age and tough competition from the likes of Netflix and Disney.
Channel 4 unveiled one of the biggest rounds of job cuts in its history in January, with headcount to be reduced by around 18pc, or 240 roles.
The Gogglebox broadcaster will also sell its former London headquarters in Westminster for as much as £90m in a bid to shore up its balance sheet.
ITV has launched its own streaming service, ITVX, as it looks to win over younger viewers.
Earlier this year it sold its stake in BritBox International to partner BBC for £255m as bosses focus on the company’s own streaming push.
The moves, combined with cost-cutting efforts, have helped to lift ITV’s share price by more than a fifth since the start of the year.
However, they remain at historical lows, with the broadcaster valued at just over £3bn, fuelling speculation it could be vulnerable to a takeover bid. ITV declined to comment.
