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ITV expected to cut more costs

ITV expected to cut more costs

Michael Grade

ITV executive chairman Michael Grade is expected to unveil a fresh round of cost cutting, which could result include wide-ranging redundancies, when announcing half-year results later this week.

The broadcaster is battling with a weakening advertising market, and up to 600 posts in production and advertising sales could be cut before the end of the year, according to The Sunday Times.

The move is reported to be the first recommendation of a review by the Boston Consulting Group (BCG), which was drafted in to assess efficiency at ITV's content and commercial divisions.

However, while Grade is expected to announce that more efficiencies and savings will have to be made when he presents interim results on Wednesday, he is not expected to announce details of  job cuts.

An ITV spokesman stressed that the BCG review was still in its early stages.

"BCG is currently working with us to help develop improvements to our processes and our ways of working.  BCG's findings will be reviewed and, where applicable, implemented in due course," he said.

Unions expect to hear more on job losses by September.

Earlier this year, Grade said savings of £41m had to be made from the broadcaster's budget and the company has already made some redundancies. Another £40m is planned to be saved in 2009 as ITV cuts back its regional news output.


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Reader Response

Added: Tuesday, 5 August 2008 14:20 BST
Anonymous, Manchester, United Kingdom

"Another £40m is planned to be saved in 2009 as ITV cuts back its regional news output. "

So what happens to the much vaunted itv.com/LOCAL ?


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Added: Tuesday, 5 August 2008 14:17 BST
Anonymous, Manchester, United Kingdom

I worked with Roy Mayoh many years ago, for many years at Thames TV.

There were lots of true professional in the TV industry then, by removing experience and skills, the steady decline of ITV was inevitable.

Yet they never seem to remove the more expensive accountants and managers do they, who keep coming up with other lame excuses for the fall in viewing figures.

Hint: It's because the quality and content of ITV programmes these days is so very very poor.


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Added: Monday, 4 August 2008 21:51 BST
Keith Geddes, Waltham Cross, United Kingdom

Royston Mahoy (sp).. know that name.. quite right, but then being sensible doesnt count for much these days does it. I take it the Boston is the U.S. Boston? WHY bring in a Yank company to help sort out finance problems in a Brit tv company? Between the Beeb and itv it seems they are hell bent on destroying whats left of the British tv heritage. And we know why.. who will be getting the money when it all falls flat?
How these bosses hop from company to company.. where does their allegience lie anyway. They get paid fat cat wages knowing full well when they go they`ll get more.. its a joke. Most large concerns are now. I used to have an idea what would happen in the near future.. now, not a clue. AT 57 I know I`m in the minority, nothing is aimed at me now, do 30 year olds outnumber the 50+`s??
I`ve no doubt Carol Vorderman is a casualty of these cuts.. ANY cuts cant be productive... never makes much sense.. cut the staff who do the work, then collapse. My post code still doesnt exist on some data bases.. I`ve been here over 20 years.. same niggles apply.


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Added: Monday, 4 August 2008 15:53 BST
ROYSTON MAYOH, MANCHESTER, United Kingdom

The statement ‘…The broadcaster is battling with a weakening advertising market…’ begs sympathy for the broadcaster and invites us to understand that the shedding of 600 posts in production and advertising will help put the broadcaster back on an even financial keel.
This weakening advertising market is traditionally attributed to the increasing number of alternative TV outlets.
Viewers are,quite understandably, taking advantage of content found on the vast number of alternative TV outlets and, by using their SKY+ ,creating a sensible method of scheduling their own lifestyle. ‘Prime Time & Post- Watershed’ thinking are now things of the past.
It is difficult for me, a great fan of Michael Grade, his Father and both his Uncles to understand why Michael isn’t asking the question…
‘.. Should we not be looking the beast of ‘multi-platforms’ and the reality of SKY+ in the face and doing something about ? Could we possibly be bringing our service up to date, improving our content and the way we schedule our output?
If we can - should we really be getting rid of 600 of the very people that are most able and most likely to make these necessary improvements..?
These 600 will undoubtedly secure jobs with many competitors and will probably look back and wonder why they stayed with an aging , and luddite,ITV for so long.


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