Granada cuts 1,000 jobs as ad revenue plunges

ITV broadcaster Granada today said it had cut 650 jobs over the last financial year - and 430 more were being axed.

Chief executive Steve Morrison said the reduction - which will see the remaining cuts made over the next few months - would bring staff numbers down to around 5,000.

The cuts are part of an effort to deliver cost savings of £60m a year by 2003, and came as Granada showed the global advertising slowdown hit profits over the last year.

Granada said advertising revenue was down 12% at £1.76bn this year, while pre-tax profits - stripping out investment in digital media - slid to £175m for the year to September 30, from £270m the previous year.

Mr Morrison said: ‘‘We are focusing on our core business and have taken a number of steps to reduce our costs and further increase our efficiency.’’

He added: ‘‘Significant cost savings have already been achieved and we are on track to deliver £60m of savings a year by 2003. We will emerge from the current advertising downturn leaner and more competitive.’’