ITV blames Brexit for 120 Job Losses

ITV is looking to make £25 million in savings next year to counterbalance a decline in advertising revenues which the broadcaster is blaming on “political and economic uncertainty”.

According to media reports, TV advertising is facing its worst year since 2009 with revenues set to decline by 2 percent.

As part of the savings process, ITV is planning to reduce its workforce by 120 people. The broadcaster currently employs 3,000 staff in the UK.

Speaking about the job losses, an ITV spokesperson told journalists: “At a time of political and economic uncertainty in our key markets, it’s important that we are in the strongest possible position to continue to invest in our strategy, and to meet any challenges and opportunities ahead, as we continue to grow a successful business.”

Because of continuing political uncertainty in the UK market and the financial impact it has on advertising market, the ITV is looking bolster its overseas operations.

The UK market currently accounts for 85 percent of the broadcasters revenues. However, recently the company has spent hundreds of millions of pounds investing in TV production in the United States.

A spokesperson said: ““We have taken costs out across ITV in a managed and sensible way over the past six years and we must continue to keep a tight control on spending to ensure that we are operating as efficiently and effectively as possible, while maximising our ability to invest in the high-quality programming that drives ITV’s success.”

Prior to the Brexit vote, the TV advertising market was expected to grow by 7.4 percent in 2016, following a similar pattern over the previous year.

The ITV now predicts advertising revenues over the first 9 months of the year will be down by 1 percent, year-on-year while a number of media booking agencies suggest the market has dropped even further due to fears over a “hard Brexit”.