ITV cuts jobs amid sharp slump in advertising revenues

ITV has begun cutting jobs as the broadcaster grapples with a sharp slump in advertising revenues.

The Telegraph has learned that ITV laid off employees in its in-house advertising agency last month. It comes as the broadcaster faces the biggest advertising downturn since the financial crisis, though a source denied the job losses were linked to the slump.

Staff were told about the looming cuts at ITV Creative early in the new year. Sources said there were fears of further redundancies in the coming months. A week ago chief executive Dame Carolyn Mccall insisted it was “too early to say” whether new cost-cutting measures would lead to job losses.

ITV suffered an 8pc fall in advertising revenues last year as brands cut back spending on campaigns amid broader economic malaise.

The downturn was most acute in ITV’S declining traditional TV business, which suffered a 15pc fall, though this was partially offset by growth in its ITVX streaming division.

Dame Carolyn said the Love Island broadcaster would accelerate its cost-cutting plans, aiming to strip £150m out of the business a year earlier than planned. It will also launch a new restructuring programme to save a further £50m each year.

Bosses have already implemented a hiring freeze, which is expected to last until at least the summer. Staff have also been told to rein in spending, with tighter controls on expenses.

The job cuts fell at ITV Creative, an in-house agency that creates campaigns to promote the channel and its shows both on and off air. It employs around 90 people, marking only a small part of ITV’S total workforce of 5,000.

An insider said the total number of redundancies was in single figures as the company had hired more staff with digitally focused skills.

ITV declined to comment.