BROADCASTER ITV today announced it was axing 600 jobs and making other "significant" savings aimed at cutting costs.
The company, which has been hit by a fall in advertising, said it planned efficiency savings of £155 million this year, rising to £175 million in 2010 and £245 million in 2011.
Costs will be cut through efficiencies and on network programme and regional news savings.
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Bill Jamieson: ITV slump may force huge shake-up in broadcastingITV said "significant" savings will be delivered in central services and across ITV studios operations outside London.
The company also announced it would look to sell its Friends Reunited social networking website.
ITV's executive chairman Michael Grade said: "Current conditions in the advertising market are the most challenging I have experienced in over 30 years in UK broadcasting. This is reflected both in our financial results for 2008 and the tough actions we are announcing today.
"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. Our audience share target remains unchanged."
ITV reported pre-tax losses of £2.73 billion after it wrote down the value of assets on its balance sheet. Stripping out the exceptional items, profits were down 41% at £167 million.
The company also axed the payment of a final dividend to shareholders.
Mr Grade said: "This is not a decision taken lightly. The board's judgment is that it represents the prudent course in present conditions."
ITV estimated that total net advertising revenues (NAR) for the first quarter of the year will be down by around 17% year-on-year, in line with the total market.
For April, ITV estimates that ITV NAR will outperform the total market, which is forecast to be down around 20%.
ITV reported pre-tax losses of £2.73 billion after it wrote down the value of assets on its balance sheet. Stripping out the exceptional items, profits were down 41% at £167 million.
The company also axed the payment of a final dividend to shareholders.
Mr Grade said: "This is not a decision taken lightly. The board's judgment is that it represents the prudent course in present conditions."
ITV estimated that total net advertising revenues (NAR) for the first quarter of the year will be down by around 17% year-on-year, in line with the total market.
For April, ITV estimates that ITV NAR will outperform the total market, which is forecast to be down around 20%.
Gerry Morrissey, general secretary of the broadcasting workers union Bectu said he was "outraged" at the scale of the job cuts.
"We will do everything we can to protect our members and we will protest to Ofcom about ITV's claim to be investing more in programmes when they are cutting back.
"Michael Grade has abrogated his responsibility to ITV's staff. We desperately need a new management model."
Mr Grade said the cuts were due to the "short-term horrors" of the cyclical downturn, which had seen advertising deteriorate significantly from the end of last year.
"The tough actions we are taking have to be seen against that backdrop. These are unprecedented and extremely difficult times. We have to be focused more on our core business."
Mr Grade said the measures being taken would ensure that ITV was in the "best possible shape" when the recession ends.
He maintained that ITV had made "significant operational progress" over the past year, audience share was "inching upwards" and the broadcaster was increasing its advertising market share.
Drama output on ITV will be cut from eight hours a week to seven hours, but the broadcaster will still be investing a "huge amount" in drama, said Mr Grade.
Consultations on the job losses will start on Friday and last the statutory 90 days, ITV announced.
The firm's studios in Leeds are expected to be hit by the job losses and other cuts.
ITV said it would not be giving any details of which programmes or other areas would be affected by the one-hour-a-week reduction in drama.
The firm has already announced it will be scaling back production of Heartbeat and The Royal, which will lead to the closure of one building at the Leeds studios.
Around 150 of the 600 job losses will be in Leeds, it was revealed later.
Most of the job cuts will be in London, affecting every department and accounting for around 15% of ITV's 4,500-strong workforce.
Jobs being axed include production and back office roles.
Bectu said it believed one-off drama programmes planned from this autumn would now be shelved because of the production cuts.
Changes have already been announced to The Bill, while ITV is believed to have two years' worth of Heartbeat and The Royal episodes in stock.
The union said it believed one of the main studios in Leeds would now be mothballed, with Emmerdale being the only programme produced on the site.
