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ITV has released details of its much expected cost cutting programme including job cuts, mothballing studios, slashed budgets and sell offs. 600 jobs will be lost, 150 in Leeds and the rest likely at ITV London headquatars on the Gray's Inn Road - 1,000 were axed just six months ago. As previously reported, there has been much speculation as to how ITV boss Michael Grade would make his books balance in light of the major shortfall caused in part by the advertising recession - the broadcasting union BECTU argues it's mainly a result of mis-management. Most of what is included in Grade's official cost cutting plan, released today, was already known. The cost cutting plans were revealed as ITV admitted its profits had slumped in 2007, and that it was being forced to reduce the perceived value of its assets. Losses were totaled at £2.7bn for 2008.
Studios close - programme budget slashed - sell offs
In Leeds the broadcaster plans to close its studios, what was once the home of ITV franchise Yorkshire TV.
The network's £1 billion programme budget will be cut by £65 million this year, online businesses Friends Reunited and Scoot will be sold, and it's network of ITV local web services will be scaled back. The board is also recommending holding back one dividend payment to shareholders. Renegotiate big name deals The big cut in the programme budget may mean ITV will look to renegotiate its costly deals with big names like Ant & Dec and Simon Cowell, possibly reducing fees in return for releasing them from 'golden handcuff' arrangements which stop them working for rival broadcasters. The telly firm also confirmed it is considered its options regarding its bit of the Freeview network - its SDN company - which is profitable but which could bring in some useful extra cash if sold (such as deal would not effect ITV's channels on Freeview, which aren't even broadcast on ITV's bit of the Freeview network). Announcing the cost saving programme, Grade told reporters: "Current conditions in the advertising market are the most challenging I have experienced in over 30 years in UK broadcasting. 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".
Aditional reporting by the CMU Network
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