ITV 'braced for major job cuts'

ITV's new management team is reportedly preparing to introduce major jobs cuts as part of a five-year masterplan to revitalise the X Factor broadcaster.

Adam Crozier, ITV's chief executive, and Archie Norman, its chairman, are understood to be looking to reduce the number of employees at the broadcaster's South Bank offices, reports The Independent.

Sources close to the company claim that up to half of the 1,400 staff based at the offices could be cut over the next few years. Further cutbacks are also expected among ITV's 2,600 employees around the UK and Europe.

Last year, 1,200 ITV staff were let go under a cost-saving programme masterminded by the previous chairman Michael Grade.

A source claimed that the new round of job cuts were part of the board's strategic transformation plan designed to make savings, but also bring in fresh talent.

"There comes a point when you need to change the culture internally, to change the view inside, and sometimes that can only be done by bringing in new faces" the source said.

ITV is also investing heavily in new programming and content to build on the success of The X Factor and Dancing On Ice.

In conjunction, the firm's new online managing director Fru Hazlitt is working on building up the presence of ITV.com and catch-up service ITV Player to compete with the BBC.

Numis media analyst Lorna Tilbian said: "We expect big job cuts from Archie Norman - it's very much his style - and it's what he did at Asda where he was so successful.

"The only way forward for ITV is to cut costs, build up content and hope that eventually the government will trim back the license fee going to the BBC, because it is squeezing out all other commercial operators."

Norman and Crozier are further thought to be considering a move out of ITV's South Bank tower and its Grays Inn Road buildings as part of the strategy review.

"The tower is spread over 21 floors which makes communication in such a people business difficult," said a source.

"Longer-term we will be looking to move to somewhere more practical."

Investors have reacted well to the transformation plan, but Norman has warned that it will take five tough years to genuinely turn around the broadcaster's fortunes.