ITV will cut 600 jobs as part of a cost-saving plan after the company announced huge losses.

Britain’s biggest commercial broadcaster, ITV, has today (4 March) announced that it is cutting 600 jobs as the company posts losses of £2.7 billion for 2008.

The job losses will be made across the company and form part of the cost-cutting plan aimed at saving ITV £245 million by 2011.

The company, which has been hit by a drop in advertising revenue, also aims to reduce the programming budget as well as selling the website Friends Reunited. Network programme investment will be reduced by £65m in 2009 and will be reduced by a further £70m in 2011.

Despite suffering from a dramatic write-down in the value of its broadcasting and online assets, ITV recorded a profit of £167m. However, that figure is down 41% from £281m in 2007.

Michael Grade, Executive Chairman of ITV plc, said: “Current conditions in the advertising market are the most challenging I have experienced in over 30 years in UK broadcasting. This is reflected both in our financial results for 2008 and the tough actions we are announcing today.

“We are now implementing the plan needed to enable ITV to get through this difficult period and emerge as a leaner and fitter business.”

ITV will also implement a suspension of the final dividend, which the company stated was a decision not taken lightly but represented “the prudent course in present conditions”.

The outlook appears bleak for ITV as the deterioration of the global economy and downturn in the UK television advertising market continues. According to ITV, its strategic targets for 2012, set out in September 2007, are no longer appropriate. However, the broadcaster is “retaining the target for its channels to maintain a share of commercial impacts of at least 38.5% to 2012.”