ITV Implements Cost-Cutting Measures, Leading to Job Cuts in Advertising Agency

ITV, a prominent British broadcaster, has recently initiated cost-cutting measures due to a sharp decline in advertising revenue, resulting in job cuts within its in-house advertising agency as reported by The Telegraph.

The job losses, which occurred at ITV Creative, the internal agency responsible for creating promotional campaigns for the channel and its shows, were announced to staff earlier this year amid concerns of further redundancies in the coming months.

Last year, ITV faced an 8% decrease in advertising revenues, particularly impacting its traditional TV business with a 15% decline while seeing growth in its ITVX streaming segment.

CEO Dame Carolyn McCall outlined plans to accelerate cost-saving initiatives with a target of reducing £150 million annually, along with launching a restructuring program to save an additional £50 million each year.

These measures include a company-wide hiring freeze, tightened expense controls, and a clear focus on cost reduction strategies.

Notably, ITV’s move reflects the broader challenge faced by traditional broadcasters as they strive to adapt and compete with digital advertising platforms like Facebook and Google.

Meanwhile, Channel 4 also unveiled its own cost-cutting plan with a reduction in headcount by 18% and plans for asset sales to address financial pressures.

Both ITV and Channel 4 are addressing a significant advertising downturn while grappling with shifting viewer preferences towards streaming services like Netflix and Disney, as well as the rise of social media platforms such as TikTok.

In response to these market shifts, ITV sold its stake in BritBox International to partner BBC for £255 million and focused on strengthening its own streaming service initiatives.

Furthermore, ITV aims to expand its successful production arm, ITV Studios, which recorded a 4% revenue growth to a record £2.2 billion last year, despite challenges posed by Hollywood strikes.

As ITV navigates these changes, the company remains focused on strategic restructuring to align with evolving viewer behaviors and industry dynamics.

ITV declined to provide further comments on the reported job cuts and cost-cutting measures.