'X Factor' producer readies jobs cuts

X Factor producer Talkback Thames is reportedly looking to reduce its 150 staff by 20% and significantly increase investment in developing hit new formats.

The UK production arm of the RTL Group-owned FreemantleMedia today launched a consultation with its employees about cutting numbers by around 30.

According to The Guardian, the company is hoping that the cuts will give the business a boost in the wake of ITV's decision to cancel long-running police drama The Bill, which is thought to bring a significant portion of Talkback's revenue.

In the new strategy, Talkback hopes to use its cost savings to make a "very significant" increase in its investment in programme development over the next three years.

The company, which also produces Britain's Got Talent and The Apprentice, will aim to attract more top-flight creative talent and develop more TV pilots. Talkback will also increase investment and support for its growing digital division.

Last month, Talkback's chief executive Lorraine Heggessey left her post after five years spent leading the company.

Sara Geater, Talkback's interim chief executive, said that the production firm is experiencing some "very tough market conditions", which requires decisive action.

"In order to realign the business in a very competitive market we are taking the necessary steps to ensure that we are in the best position to grow the business," she said.

"I'm confident that our new strategy will ensure we have a stronger, leaner and more commercial platform for growth.

"It will enhance our creativity, allow for fresh thinking and will ensure we maintain the high editorial standards that Talkback is known for."

Talkback, which also produces The IT Crowd and Never Mind the Buzzcocks, recorded a turnover of £139m last year, slightly down from £141m in 2008.