Proactive Investors - ITV PLC (LON:ITV) shares tumbled more than 3% after reports indicated Channel 4 would be cutting 15% of its staff.
It comes after Channel 4 boss Alex Mahon said the industry was experiencing the worst advertising downturn since the 2008 financial crash.
In ITV’s third quarter statement in November, it revealed total advertising revenues were down 7%, which in turn caused media and entertainment sales to drop by the same percent to £1.45 billion.
However, ITV said growth in both its ‘studio’ division, which owns several production companies, and digital advertising was able to offset the decline in linear ad revenue.
“It is evident that our strategy of growing the Studios and M&E digital business is helping ITV to offset the current headwinds and we remain confident in delivering our 2026 targets when we expect two-thirds of revenue to come from these growth drivers,” Carolyn McCall, ITV’s boss, said in November.
An ITV spokesperson did not comment on potential job cuts.
Channel 4 is reportedly set to axe over 200 positions, equating to 15% of its current staff.
“Whilst organisational change is never without personal impact, it is a necessary response to allow us to stand out,” a Channel 4 spokesperson said.
It comes as the group aim to cut back on its wage bill of £108 million, having already cut shows from its £713 million programming budget.
Last year, shows like SAS: Who Dares Wins, The Big Narstie Show and Steph's Packed Lunch were axed.
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