ITV is set to cut 200 jobs in a bid to stabilise its finances amidst a significant decline in advertising revenues.
The restructuring program, led by CEO Dame Carolyn McCall, aims to save £50 million annually.
Dame Carolyn informed staff via email this morning that redundancy consultations will commence, offering both voluntary and compulsory redundancies.
The exact number of roles affected could change depending on the uptake of voluntary exits.
The Love Island and I’m A Celebrity broadcaster faces severe financial pressures due to a slump in advertising spend as brands cut budgets in response to rising inflation and interest rates. Dame Carolyn has described this downturn as the worst since the financial crisis.
Who will the job cuts target?
ITV’s robust studios business has also been impacted by last year’s Hollywood strikes, which halted production for months. Additionally, sales of ITV shows to other broadcasters have slowed as they, too, cut content spending due to the advertising slump.
The job cuts, initially reported by industry magazine Broadcast, will primarily target ITV’s media and entertainment division, including streaming and broadcasting operations. Back-office roles in commercial and technology functions will also be affected, with potential replacements through automation being considered. ITV Studios, news teams, daytime TV, and soap operas are expected to be exempt from these cuts to maintain content output.
Meetings with affected staff members are being held today, with a 45-day consultation process to follow. An existing hiring freeze, initially set to end over the summer, will be extended until the year’s end.
What does the future look like?
This restructuring underscores the significant challenges traditional broadcasters face as they transition to the streaming era and compete with giants like Netflix and Disney. In January, Channel 4 announced one of the largest rounds of job cuts in its history, reducing its workforce by around 18 percent, or 240 roles, and planning to sell its former London headquarters for up to £90 million.
To adapt, ITV has launched its own streaming service, ITVX, aiming to attract younger viewers. Earlier this year, it sold its stake in BritBox International to the BBC for £255 million, focusing on its streaming initiatives. These strategic moves and cost-cutting efforts have boosted ITV’s share price by over 20 percent since the start of the year.
However, shares remain at historic lows, valuing the broadcaster at just over £3 billion, sparking speculation of a potential takeover bid.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
