ITV profits plummet, 600 job losses

ITV, which broadcasts popular shows such as X Factor and Dancing on Ice, has announced a major cost-cutting programme after it revealed a fall in pre-tax profits of 41% for 2008.

The company is planning to shed 600 jobs, the majority of which will be back office jobs in London, while 150 will go in Leeds, according to the BBC.

It is understood that the broadcaster will close its Kirkstall Road studio in Leeds, which makes programmes such as Heartbeat and The Royal. However, soap opera Emmerdale will continue to be filmed in Yorkshire.

ITV is looking to sell the social networking site Friends Reunited and online business directory Scoot in order to cut costs.

Chairman Michael Grade described current conditions in the advertising market as “the most challenging I have experienced in over 30 years in UK broadcasting.”

The stricken broadcaster said advertising revenue has fallen in the current economic downturn and is estimating its net advertising revenue for the first three months of the year will be down by approximately 17% on the same period in 2008.

Finally, the company said it will suspend its dividend for the 2009 year.

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