ITV is cutting staff as it struggles to cope with a dramatic drop in advertising revenue.
ITV terminated employees from its internal advertising agency in the last month. The job cuts come as ITV faces its biggest advertising slump since the financial crash, although a source denies that the job cuts are linked to this slump.
Early in the year, ITV Creative informed its staff of the impending cuts. Sources say there are fears about more redundancies coming in the next few months.
This comes after Dame Carolyn McCall, chief executive of the company, said it was “too soon to say” if new cost-cutting initiatives would result in job losses.
ITV’s advertising revenue fell by 8 percent last year, as brands reduced their spending on campaigns in response to the economic downturn.
ITV’s traditional TV business suffered the most severe decline, with a drop of 15pc. However, this was partly offset by ITVX, its streaming division.
Dame Carolyn announced that the Love Island broadcaster will accelerate its cost-cutting plan, with the aim of removing £150m from the business one year earlier than originally planned.
The company will also introduce a new restructuring program to save an additional £50m per year.
The hiring freeze has already been implemented by the bosses, and is expected to continue until the summer.
The staff has also been instructed to tighten up the controls on expenditures such as travel, entertainment and other expenses.
ITV Creative is an internal agency that designs campaigns to promote ITV and its shows on and off-air. Around 90 people are employed, which is a tiny part of ITV’s 5,000-strong workforce.
Insiders said that the total number was only a few, as the company hired more employees with digitally focused skills. The hiring freeze announced after the cuts is unclear as to how it will affect ITV Creative.
The revamp highlights the stress on traditional broadcasters, as they adjust to the streaming age while competing with digital advertising platforms like Facebook and Google.
Channel 4 announced in January the largest job cuts of its history. The headcount is expected to be reduced by 18%, or around 240 positions.
In an effort to improve its financial situation, the youth-focused broadcaster will sell its former London Headquarters in Westminster at a price of up to £90m.
Both companies are struggling with the biggest advertising slump since 2008.
Despite the fact that audiences are increasingly switching to rival streaming platforms such as Netflix, Disney and social media platforms like TikTok, traditional broadcasters still struggle to keep viewers.
In an effort to reach more people, bosses are focusing on streaming. ITV sold BritBox International for £255m to BBC earlier this month as it focused on its streaming service.
The company also plans to expand the production unit, which has produced hits such as Bodyguard and Line of Duty.
ITV Studios’ revenues grew by 4pc to £2.2bn last year, a record. However, bosses have warned that the division is now beginning to feel the effects of the Hollywood strikes last year.
ITV has declined to comment.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.